Question

Haskins Company employs material handling employees who move materials between production divisions at a labor cost of $182,000 a year. It is estimated that these employees move 620,000 pounds of material per year. If 62,000 pounds are moved in March, how much of the material handling cost should be assigned to products made in March? (Do not round your intermediate calculations.)

Answer 1

Answer:

Total cost= $18,200

Explanation:

Giving the following information:

Haskins Company employs material handling employees who move materials between production divisions at a labor cost of $182,000 a year. It is estimated that these employees move 620,000 pounds of material per year. 62,000 pounds are moved in March.

Proportion for March= 62,000/620,000= 0.1

Total cost= 182,000*0.1= 18,200