Mathew Knight, has recently completed a cost study of the firm's material-handling department. Knight used work...

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Mathew Knight, has recently completed a cost study of the firm's material-handling department. Knight used work measurement to quantify the department's activity. The control factor unit used in the work-measurement study was hundreds of pounds of equipment unloaded or loaded at the company's loading dock. Knight compiled the following data. Month January February March Units of Activity (hundreds of pounds of equipment loaded Material- Handling Department Costs $ 17,070 16,710 16,230' or unloaded) 1,800 1,600 1,500 April May 3,000 20,000 2,200 17,840 June 2,400 18,800 July 2,800 20,070 August 2,600 18,260 September 1,400 15,200 October 1,700 16,790 November 2,000 17,380 December 2,200 18,140 13 Required: 5. Estimate the material-handling department's cost behavior using the high-low method. Use an equation to express the results of this estimation method. Mathew Knight, has recently completed a cost study of the firm's material-handling department. Knight used work measurement to quantify the department's activity. The control factor unit used in the work-measurement study was hundreds of pounds of equipment unloaded or loaded at the company's loading dock. Knight compiled the following data. Month January February March Units of Activity (hundreds of pounds of equipment loaded Material- Handling Department Costs $ 17,070 16,710 16,230' or unloaded) 1,800 1,600 1,500 April May 3,000 20,000 2,200 17,840 June 2,400 18,800 July 2,800 20,070 August 2,600 18,260 September 1,400 15,200 October 1,700 16,790 November 2,000 17,380 December 2,200 18,140 13 Required: 5. Estimate the material-handling department's cost behavior using the high-low method. Use an equation to express the results of this estimation method.

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To calculate the cost per unit of activity cost per hundred pounds of ma... View the full answer