[babygirlxxl]

Nubian Company employs material handling employees who move materials between production divisions at a labor cost of $160,000 a year. It is estimated that these employees move 75,000 pounds of material per year. If 6,000 pounds are moved in March, how much of the labor cost should be assigned to products made in March?

[KongTheKonqueror]

First you need to divide your total costs of $160,000 by your total activity driver (materials moved) of 75,000 which equals $2.1333 per pound of material.

Then apply the costs in March by multiplying the cost rate of $2.1333 per pound by the amount of material moved of 6,000 which equals $12,800.

[CaptainForest]

I agree with Kong.