Haskins Company Employs Material Handling Employees Who Move Materials Between

Multiple Choice

Haskins Company employs material handling employees who move materials between production divisions at a labor cost of $190,000 a year. It is estimated that these employees move 700,000 pounds of material per year. If 70,000 pounds are moved in March, how much of the material handling cost should be assigned to products made in March? (Do not round intermediate calculations.)

A) $19,000
B) $13,000
C) $26,000
D) $20,000