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Cost Allocation for Kleyman Company

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The controller of Kleyman 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 8,000 7,000
Total expected material moves 300 900
Expected direct labor-hours per unit 5 7

The total materials handling cost for the year is expected to be 34,600.
Reference: 8-11

If the materials handling cost is allocated on the basis of direct labor-hours, how much of the total materials handling cost should be allocated to the wall mirrors? (Round off your answer to the nearest whole dollar).

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The solution explains the calculation of cost allocation given the allocation base in a brief calculation.

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