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27. Figure 11-8. Booth Inc. uses three delivery trucks to transport finished parts from its plant to the plants of its customers. The delivery trucks

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27.

Figure 11-8. Booth Inc. uses three delivery trucks to transport finished parts from its plant to the plants of its customers. The delivery trucks are obtained through a five-year operating lease that costs $12,000 per year per truck. Booth employs 6 drivers who receive an average salary of $36,000 per year, including benefits. Parts are placed in boxes and placed in the trucks. Each truck holds 20 boxes. The average round-trip distance for a delivery is 40 miles. The boxes are retained by the customers. Each box costs $2.00 Fuel for the trucks costs $1.80 per gallon. A gallon of gas is used every 20 miles. A driver can travel 160 miles in an eight-hour shift. Each driver works 40 hours per week and 50 weeks per year Problem 11-16 Refer to Figure 11-8. Assume that the company uses only 90 percent of the activity capacity. The actual costs incurred at this level were: Salaries Lease Boxes Fuel 252,000 36,000 200,000 20,400 What is the budget for this level of activity? In your computations round variable rates to the nearest cent. a. b. Prepare a performance report. If variance amount is unfavorable enter "U", if it is favorable enter "F" and enter "NA", if there is no variance Booth Inc. Performance Report Resource AtaBudget Variance Variance(Favorable/Unfavorable) Salaries Lease Boxes Fuel Total

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