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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
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 $21,500 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 $2,250 per year. Inspection uses some special testing equipment that has depreciation of $4,000 per year and an operating cost of $1,250. Receiving has three employees who have an average salary of $45,000 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. Line Item Description Amount Unloading $fill in the blank 1 Counting $fill in the blank 2 Inspecting $fill in the blank 3 2. Explain the two methods used to assign costs to activities. When the resource is used only by one activity, then fill in the blank 1 of 2 is possible. When the activities are shared, as in the case of labor, then fill in the blank 2 of 2 must be used
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