Haskins Company employs material handling employees who move materials between production divisions at a labor cost of $189,000 a year. It is estimated that these employees move 690,000 pounds of material per year. If 69,000 pounds are moved in March, how much of the material handling cost should be assigned to products made in March? (Do not round intermediate calculations.)
A) $18,900
B) $12,900
C) $25,900
D) $19,900

Question

Quizplus · Accepted Answer

The cost per pound is $189,000 / 690,000 pounds = $0.274 per pound. For March, 69,000 pounds are moved, so the cost is 69,000 * $0.274 = $18,906, which rounds to $18,900.

Haskins Company Employs Material Handling Employees Who Move Materials Between