ASSIGNING COSTS TO ACTIVITIES, RESOURCE DRIVERS Receiving has three activities: unloading, counting goods, and inspecting. Unloading uses
Question:
ASSIGNING COSTS TO ACTIVITIES, RESOURCE DRIVERS Receiving has three activities: unloading, counting goods, and inspecting. Unloading uses a forklift that is leased for $12,000 per year. The forklift is used only for unloading.
The fuel for the forklift is $2,400 per year. Other operating costs (maintenance) for the forklift total $1,000 per year. Inspection uses some special testing equipment that has a depreciation of $800 per year and an operating cost of $500. Receiving has three employees who have an average salary of $40,000 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.
. Explain the two methods used to assign costs to activities.
Exercise
Step by Step Answer:
Cornerstones Of Financial Accounting Current Trends Update
ISBN: 9781111527952
1st Edition
Authors: Jay Rich , Jeff Jones, Maryanne Mowen , Don Hansen