The receiving department of Owen has three activities: unloading, counting goods, and inspecting. Unloading requires a forklift that is leased for $15,000 per year. The forklift is used only for unloading. The fuel for the forklift is $2,000 per year. Inspection requires special testing equipment that has a depreciation of $500 per year and an operating cost of $1,000 per year. Receiving has four employees who each have an average salary of $35,000 per year. The work distribution matrix for the receiving personnel is as follows:

Activity Percentage of Time on Each Activity

Unloading 25%

Counting 40%

Inspecting 35%

Calculate the cost of unloading.

a.$56,000

b.$50,500

c.$54,000

d.$52,000

Question

Godiva

Business

31 May, 05:10

The receiving department of Owen has three activities: unloading, counting goods, and inspecting. Unloading requires a forklift that is leased for $15,000 per year. The forklift is used only for unloading. The fuel for the forklift is $2,000 per year. Inspection requires special testing equipment that has a depreciation of $500 per year and an operating cost of $1,000 per year. Receiving has four employees who each have an average salary of $35,000 per year. The work distribution matrix for the receiving personnel is as follows:

Activity Percentage of Time on Each Activity

Unloading 25%

Counting 40%

Inspecting 35%

Calculate the cost of unloading.

a.$56,000

b.$50,500

c.$54,000

d.$52,000

+3

Answers (1)

Know the Answer?

Moises Chen · Answer 1

The cost of unloading is $52,000

Explanation:

Cost is the cash interest that a corporation has expended on sales and accounting to manufacture it. Within an organization, costs represent the amount of money spent on manufacturing or developing a good or service. Price requires no benefit premium.

Resource Unloading Equipment $15,000

Fuel $2,000

Operating Labour = (25% * [4 $35,000] = $35,000)

= $35,000

Total = $35,000+$15,000 + $2,000

= $52,000