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Chapter 5 Homework Assignment eBook Assigning Costs to Activities, Resource Drivers Print Item The Receiving Department has three activities: unloading, counting goods, and inspecting. Unloading

Chapter 5 Homework Assignment eBook Assigning Costs to Activities, Resource Drivers Print Item The Receiving Department has three activities: unloading, counting goods, and inspecting. Unloading uses a forklift that is leased for $19,500 per year. The forklift is used only for unloading. The fuel for the forklift is $3,000 per year. Other operating costs (maintenance) for the forklift total $2,750 per year. Inspection uses some special testing equipment that has depreciation of $3,250 per year and an operating cost of $1,500. 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: Percentage of Time on Activity Unloading Counting Each Activity 40% 25% Inspecting 35% No other resources are used for these activities. Required: 1. Calculate the cost of each activity. Unloading Counting Inspecting 2. Explain the two methods used to assign costs to activities. When the resource is used only by one activity, then Check My Work 3 more Check My Work uses remaining. is possible. When the activities are shared, as in the case of labor, then must be used. Previous Next

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