Classic Manufacturing has provided the following information:
Expected production of product KB11 is estimated to be 12,000 units for the upcoming period. Each unit of KB11 takes three direct labor hours to produce and 1,000 material moves are expected.
Expected production of product JL22 is estimated to be 6,000 units for the upcoming period. Each unit of JL22 takes nine direct labor hours to produce and 300 material moves are expected.
Material handling costs are estimated to be $10,800 for the upcoming period and are allocated based on direct labor hours.
What is the material handling cost per unit of JL22?
A) $1.08
B) $0.60
C) $0.42
D) $0.36

Question

Quizplus · Accepted Answer

The Answer of Classic Manufacturing has provided the following information:
Expected production of product KB11 is estimated to be 12,000 units for the upcoming period. Each unit of KB11 takes three direct labor hours to produce and 1,000 material moves are expected.
Expected production of product JL22 is estimated to be 6,000 units for the upcoming period. Each unit of JL22 takes nine direct labor hours to produce and 300 material moves are expected.
Material handling costs are estimated to be $10,800 for the upcoming period and are allocated based on direct labor hours.
What is the material handling cost per unit of JL22?
A) $1.08
B) $0.60
C) $0.42
D) $0.36

Classic Manufacturing Has Provided the Following Information