Question

Haskins Company employs material handling employees who move materials between production divisions at a labor cost of $184,000 a year. It is estimated that these employees move 640,000 pounds of material per year. If 64,000 pounds are moved in March, how much of the material handling cost should be assigned to products made in March

Answer 1

material handling cost should be assigned to products made in March $36,000.

Given data,

labor cost = $360,000

move material per year = 600,000 pounds

To find out material handling cost.

we find here first Labor Cost per pound of material that is express as

Labor Cost per pound of material = Labor Cost ÷ Number of Pounds of material   .......................1

Labor Cost per pound of material ==360000/600000= $0.6 per pound of material

Labor Cost per pound of material = $ .6 per pound of material

so, we can say that 60000 pounds are moved in March so cost will be

60000 pounds are move cost = 60000 × $0.6

60000 pounds are move cost = $36000

material handling cost is: $36,000

What is material handling cost?

The freight for the items (equipment and material), insurance, and customs clearance fees, among other expenses, make up material handling costs (or MRC). Posted in Procurement and tagged cost, procurement, logistics.

Learn more about material handling cost: https://brainly.com/question/20598911?referrer=searchResults

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