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The controller of Ferrence Company 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:
Wall Mirrors Specialty Windows
Total expected units produced 7,000 1,000
Total expected material moves 700 900
Expected direct labor-hours per unit ....... 6 4
The total materials handling cost for the year is expected to be $16,486.40.
Question 1: If the materials handling cost is allocated on the basis of material moves, how much of the total materials handling cost should be allocated to the specialty windows? (Round off your answer to the nearest whole dollar.)
A. $3,266
B. $9,274
C. $8,243
D. $6,595
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