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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 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 $

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Answers (1)
  1. 20 May, 01:31
    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
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