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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

  1. 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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