Merone Company allocates materials handling cost to the company's two products using the below data: Modular Homes Prefab Barns Total expected units produced 5,000 8,000 Total expected material moves 500 100 Expected direct labor-hours per unit 700 200 The total materials handling cost for the year is expected to be $218,790. If the materials handling cost is allocated on the basis of material moves, the total materials handling cost allocated to the modular homes is closest to: (Round your intermediate calculations to 2 decimal places.)

Modular homes= $182,325

Explanation:

Giving the following information:

Modular Homes - Prefab Barns

Total expected material moves 500 100

The total materials handling cost for the year is expected to be $218,790.

To calculate the allocated costs to each product line, first, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 218,790/600

Predetermined manufacturing overhead rate= $364.65 per move

Now, we can allocate overhead:

Modular homes= 364.65*500= $182,325

Prefab Barnes= 364.65*100= $36,465

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.