Ask Question
13 January, 17:56

The receiving department has three activities: unloading, counting goods, and inspecting. Unloading uses a forklift that is leased for $15,000 per year. The forklift is used only for unloading. The fuel for the forklift is $3,600 per year. Other operating costs (maintenance) for the forklift total $1,500 per year. Inspection uses some special testing equipment that has depreciation of $1,200 per year and an operating cost of $750. Receiving has three employees who have an average salary of $50,000 per year. The work distribution matrix for the receiving personnel is as follows:

Activity Percentage of Time on Each Activity

Unloading 40%

Counting 25

Inspecting 35

No other resources are used for these activities.

Required:

Calculate the cost of each activity.

Unloading $

Counting $

Inspecting $

+4
Answers (1)
  1. 13 January, 18:22
    0
    Calculating the cost of each activity,

    Unloading = $ 80,100

    Counting = $ 37,500

    Inspecting = $54,450

    Explanation:

    Given:

    Unloading lease = $15,000 per year

    Fuel for the forklift = $3,600 per year

    Maintenance for the forklift = $1,500 per year

    Inspection uses some special testing equipment that has depreciation of $1,200 per year

    Operating cost = $750.

    Receiving employees average salary = $50,000 per year

    Salaries; 3 * 50,000 = 150,000

    Unloading salary = 40% * 150,000 = 60,000

    Counting salary = 25% * 150,000 = 37,500

    Inspecting salary = 35% * 150,000 = 52,500

    Unloading Counting Inspection

    Equipment 15,000 1,200

    Fuel 3,600

    Operation cost 1,500 750

    Labor 60,000 37,500 52,500

    Total cost 80,100 37,500 54,450
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The receiving department has three activities: unloading, counting goods, and inspecting. Unloading uses a forklift that is leased for ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers