The controller of Hendershot Corporation estimates the amount of materials handling overhead cost that should be allocated to the company's two products using the data that are given below: The total materials handling cost for the year is expected to be $6,123.60.
If the materials handling cost is allocated on the basis of material moves, the total materials handling cost allocated to the specialty windows is closest to: (Do not round your intermediate calculations.)

Question

The controller of Hendershot Corporation estimates the amount of materials handling overhead cost that should be allocated to the company's two products using the data that are given below:  The total materials handling cost for the year is expected to be $6,123.60.
If the materials handling cost is allocated on the basis of material moves, the total materials handling cost allocated to the specialty windows is closest to: (Do not round your intermediate calculations.)

Quizplus · Accepted Answer

11eacbfc_c688_7480_8ffe_d9281ae9d5f1_TB7552_00 Cost per material move = Total materials handling cost ÷ Total expected material moves
= $6,123.60 ÷ 600 material moves = $10.206 per material move
Cost allocated to specialty windows = $10.206 per material move × 100 material moves = $1,020.60

The Controller of Hendershot Corporation Estimates the Amount of Materials