Please explain the difference in these 2 homework problems. Why is it that in problem 33, I only need to use the direct labor hours per unit, while in problem 34, I need to use both the direct labor hours per unit and units produced? If I'm wrong, please explain why.

33.

Butscher Company allocates materials handling cost to the company's two products using the below data: Modular homes Prefab Barns

Total expected units produced 1000 1000

Total expected material moves 700 200

Expected direct labor hours per unit 700 100 The total materials handling cost for the year is expected to be $9,072. 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 prefab barns? (Round off your answer to the nearest whole dollar.)

A.

$3,187

B.

$1,134

C.

$9,072

D.

$4,536

Predetermined overhead rate = $9,072 (700 DLHs + 100 DLHs) = $11.34 per DLH Materials handling cost allocated to Prefab Barns = $11.34 per DLH 100 DLHs = $1,134

35.

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 7000 1000

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. 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.)

A.

$13,220

B.

$15,053

C.

$9,892

D.

$8,243

Predetermined overhead rate = $16,486.40 (6 DLHs per unit 7,000 units + 4 DLHs per unit 1,000 units) = $16,486.40 (42,000 DLHs + 4,000 DLHs) = $0.3584 per DLH Materials handling cost allocated to Wall Mirrors = $0.3584 per DLH 42,000 DLHs = $15,052.80