Gueye Company decided to look more closely at the inspection activity in its factory. The following information for a year was collected:
• Demand for inspections: 170,000
• Resources needed:
• 6 inspectors, capable of inspecting 30,000 units per year. Salary is $32,000 each.
• Supplies (small tools, oil, rags) expected to cost $0.70 per inspection.
• Workbenches, computers, etc., depreciation: $18,300 per year.
• Factory space for the inspection station, utilities: $12,600 per year.
Required:
Prepare a static budget for the inspection activity for the year.