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 $$15,000$ per year. The forklift is used only for unloading. The fuel for the forklift is $$3,600$ per year. Other operating

costs $($maintenance$)$ for the forklift total $$1,500$ per year. Inspection uses some special testing equipment that has

depreciation of $$1,200$ per year and an operating cost of $$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:

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.

When the resource is used only by one activity, then $($Direct Tracing$/$resource drivers$)$

is possible. When the activities are shared, as in

the case of labor, then $($Direct Tracing$/$resource drivers$)$

must be used.