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 11350
February 1200 11350
March 1100 11050
April 2600 12120
May 1800 11400
June 2000 12000
July 2400 12550
August 2200 11100
Sept. 1000 10200
October 1300 11250
Novem. 1600 11300
Decem. 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.