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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 $16,000 per year. The forklift is used only for unloading. The fuel for the forklift is $4,200 per year. Other operating costs (maintenance) for the forklift total $1,750 per year. Inspection uses some special testing equipment that has depreciation of $3,000 per year and an operating cost of $750. Receiving has three employees who have an average salary of $35,000 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 $ 41,410 x Counting $ 26,250 Inspecting $ 1,312.5 X
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