Question: begin{tabular}{|l|l|r|r|r|} hline 1 & Q2. & & 2 & & & hline 3 & Month & Materials Handling Cost & Number of Moves


\begin{tabular}{|l|l|r|r|r|} \hline 1 & Q2. & & \\ 2 & & & \\ \hline 3 & Month & Materials Handling Cost & Number of Moves \\ \hline 4 & Jan & 2000 & 120 & Low point \\ \hline 5 & Feb & 3090 & 125 \\ \hline 6 & March & 2780 & 175 \\ \hline 7 & Apr & 1990 & 200 \\ \hline 8 & May & 7500 & 600 & High point \\ \hline 9 & Jun & 5300 & 300 \\ \hline 10 & Jul & 4300 & 250 \\ \hline 11 & Aug & 6300 & 400 \\ \hline 12 & Sep & 5600 & 475 \\ \hline 13 & Oct & 6240 & 425 \\ \hline \end{tabular} Q3. a. High Number of moves = May 600=7500600=6900 Low number of moves- Jan 120=2000120=1880 b. Variable rate for materials Handling based on number of moves Variable rate =( High Cost-Low cost) / (High moves-Low moves) (75002000)/(600120)5540/48011.5permove C. Calculate fixed monthly cost for materials handling High Point Fixed cost= total cost-variable cost Fixed cost= total cost(-variable rate x moves) FC=7500(11.5600) Fixed Cost =600 |
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