20 May, 01:24

# 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 ActivityUnloading 40%Counting 25Inspecting 35No other resources are used for these activities.Required:Calculate the cost of each activity.Unloading \$Counting \$Inspecting \$

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1. 20 May, 01:31
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Calculating the cost of each activity,

Counting = \$ 37,500

Inspecting = \$54,450

Explanation:

Given:

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

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

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