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Work Measurement/Cost Estimation
Control factor unit used in the work measurement study was hundreds of lb of equipment unloaded or loaded at the dock.
Month Units of Activities Material handling cost $January 1400 11350February 1200 11350March 1100 11050April 2600 12120May 1800 11400June 2000 12000July 2400 12550August 2200 11100Sept. 1000 10200October 1300 11250Novem. 1600 11300Decem. 1800 11700
1.) Draw a scatter diagram of the cost data for material handling department.
2.) Estimate material handling cost behavior using high low method.
3.) Predict company's material handling costs for a month when 2300 units of activity are recorded.
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