Andujo Company Allocates Materials Handling Cost to the Company's Two

question 15

Multiple Choice

Andujo Company allocates materials handling cost to the company's two products using the below data: The total materials handling cost for the year is expected to be $115,776.
-If the materials handling cost is allocated on the basis of direct labor-hours,how much of the total materials handling cost would be allocated to the prefab barns? (Round off your answer to the nearest whole dollar. )

• A)$43,416
• B)$57,888
• C)$81,569
• D)$19,296

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Definitions:

Sale

A transaction between two parties where the buyer receives goods, services, or assets in exchange for money.

Revenue Recognition

Refers to the criteria or guidelines used by a company to recognize revenue in its financial statements, ensuring revenue is recorded when earned.

Criterion

A principle or standard by which something may be judged or decided.

Farming

The practice of cultivating land, raising crops, and/or keeping animals to produce food and other agricultural products.