The Kendall Equipment Company manufactures lathes, routers, saws, and other woodworking equipment. The companys controller imported its

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The Kendall Equipment Company manufactures lathes, routers, saws, and other woodworking equipment. The company’s controller imported its weekly manufacturing data from the past two years into Excel. The data included materials handling costs, number of parts moved, weight of parts, and volume of parts. The controller used the CORREL function to help to determine which variable would be the best allocation base for its material handling costs. Following are the results of the CORREL function in the controller’s analysis.

Rank the four variables from the most highly correlated with materials handling costs to the least correlated. Which variable would you recommend that be used as the allocation base for materials handling costs?

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