Martha's Vineyard Marine Supply is a wholesaler for a large variety of boating and fishing equipment. The company's controller, 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

Units of Activity (hundreds of pounds of Material- equipment loaded Handling Month or unloaded ) Department Costs January 3,400 $ 13,300 February 3, 200 12,900 March 2,900 12,050 April 2, 600 11, 800 May 3,800 12,700 June 4,000 14,950 July 3, 600 13 , 600 August 3, 400 13,090 September 4, 200 14, 040 October 2,700 11 , 850 November 2, 800 12,950 December 3,000 12,950