Haskins Company employs material handling employees who move materials between production divisions at a labor cost of $190,000 a year. It is estimated that these employees move 700,000 pounds of material per year. If 70,000 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) $19,000
B) $13,000
C) $26,000
D) $20,000

Question

Quizplus · Accepted Answer

The material handling cost assigned to products made in March is $19,000. This is calculated by multiplying the total material handling cost by the ratio of pounds moved in March to the total pounds moved in a year.

Haskins Company Employs Material Handling Employees Who Move Materials Between