Marthas Vineyard Marine Supply is a wholesaler for a large variety of boating and fishing equipment. The companys controller, Mathew Knight, has recently completed a
Marthas Vineyard Marine Supply is a wholesaler for a large variety of boating and fishing equipment. The companys controller, Mathew Knight, has recently completed a cost study of the firms material-handling department in which he used work measurement to quantify the departments activity. The control factor unit used in the work-measurement study was hundreds of pounds of equipment unloaded or loaded at the companys loading dock. Knight compiled the following data.
Units of Activity | ||||||
Month | (hundreds of pounds of equipment loaded or unloaded) | Material-Handling Department Costs | ||||
January | 3,000 | $ | 12,900 | |||
February | 2,800 | 12,500 | ||||
March | 2,500 | 11,850 | ||||
April | 2,200 | 11,400 | ||||
May | 3,400 | 12,300 | ||||
June | 3,600 | 14,350 | ||||
July | 3,200 | 13,200 | ||||
August | 3,000 | 12,600 | ||||
September | 3,800 | 13,560 | ||||
October | 2,300 | 11,650 | ||||
November | 2,400 | 12,550 | ||||
December | 2,600 | 12,550 | ||||
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Predict the firms material-handling departments costs for a month when 2,000 units of activity are recorded. (Do not round intermediate calculations. Round variable cost per unit to 2 decimal places and final answer to the nearest whole dollar amount.)
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