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Assigning Costs to Activities, Resource Drivers The Recelving Department has three activitiest unloading, counting goods, and inspecting. Unlooding uses a forklift that is leased for
Assigning Costs to Activities, Resource Drivers The Recelving Department has three activitiest unloading, counting goods, and inspecting. Unlooding uses a forklift that is leased for $19,500 per year, The forkift is used only for unioading. The fuel for the forkift is $4,2,00 per year, Other operating costs (maintenance) for the forkift total $4,000 per year. Inspection uses some special testing equipment that has depreciation of $3,500 per year and an operating cost of $1,000. Recelving has three employees who have an average salary of $30,000 per year. The work distnbution 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 oniv by one activity, then is possible. When the activibes are shared, as in the case of labor, then must be used
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