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Assigning Costs to Activities, Resource Drivers The Receiving Department has three activities: unloading, counting goods, and inspecting. Unloading uses a forkbit that is leased for
Assigning Costs to Activities, Resource Drivers The Receiving Department has three activities: unloading, counting goods, and inspecting. Unloading uses a forkbit that is leased for $21,500 per year. The forklift is used only for unloading. The fuel for the forklift is $4,700 per year, Other operating costs (maintenance) for the forklift total $2,000 per vear Inspection uses some special testing equipment that has depreciation of $4,000 per year and an operating cost of $2,000. Receiving has three emplovees Who have an average salary of $40,000 per year. The work distribution matrix for the receiving personnel is as follows: No other resources are used for these activities. Required: 1. Calculate the cost of each activity. 2. Explain the two methods used to assign costs to activities. When the resource is used only by one activity, then is possible. When the activities are shared, as in the case of labor, then Required: 1. Calculate the cost of each activity. 2. Explain the two methods used to assign costs to activities. When the resource is used only by one activity, then is possible. When the activities are shared, as in the case of iabor, then must be used
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