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Sagot :
The material-handling cost per wall mirror under activity-based costing is $280
What is activity-based costing?
Activity-based costing involves absorbing overheads based on cost drivers which directly impact the incurrence of the overhead, in this case, material moves determine the amount of material-handling costs to be incurred, hence, material-handing overheads would be absorbed into the two products based on material moves, which is the appropriate cost driver.
There 25 materials move in both divisions (i.e. 7+18=25)
Material-handling cost per material move=Budgeted material-handling costs /total material moves
Budgeted material-handling costs =$30,000
Material-handling cost per material move=$30,000/25
Material-handling cost per material move=$1,200
Total material-handing costs for wall mirror=number of material moves for wall mirror*Material-handling cost per material move
Total material-handing costs for wall mirror=7*$120
Total material-handing costs for wall mirror=$8,400
material-handling cost per wall mirror=Total material-handing costs for wall mirror/number of wall mirrors
material-handling cost per wall mirror=$8,400/30
material-handling cost per wall mirror=$280
Find out more about on activity-based costing:https://brainly.com/question/14912137
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