Question
Assigning Costs to Activities, Resource Drivers The Receiving Department has three activities: unloading, counting goods, and inspecting. Unloading uses a forklift that is leased for
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Assigning Costs to Activities, Resource Drivers
The Receiving Department has three activities: unloading, counting goods, and inspecting. Unloading uses a forklift that is leased for $19,500 per year. The forklift is used only for unloading. The fuel for the forklift is $3,900 per year. Other operating costs (maintenance) for the forklift total $3,000 per year. Inspection uses some special testing equipment that has depreciation of $3,000 per year and an operating cost of $1,750. 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:
1. Calculate the cost of each activity.
Unloading $fill in the blank 1 Counting $fill in the blank 2 Inspecting $fill in the blank 3
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