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    Work Measurement: Cost Estimation

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    Control factor unit used in the work measurement study was hundreds of pounds 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.

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    https://brainmass.com/business/business-management/work-measurement-cost-estimation-465491

    Solution Summary

    This solution provides a scatter diagram and steps to estimate material handling cost behavior using the high low method. It also predicts the company's material handling costs for a month.

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