Fermi Company decided to look more closely at the materials receiving activity in its factory. The driver for receiving is the number of receiving orders. The following information for a year was collected: Demand for receiving orders: 129,000 Resources needed: A. 6 workers capable of completing 25,300 receiving orders per year. (The completion of a receiving order requires unloading the materials onto the receiving dock, checking the receiving order against the purchase order and invoice, and carrying the materials to the materials storeroom.) Salary is $26,100 for each worker B. Supplies (paper, greasemarkers, small tools, rags) expected to cost $0.85 per receiving order C. Workbenches, dollies, computers, etc.; depreciation $14,600 per year D. Space for the receiving dock, utilities; $9,200 per year Required:

1. Prepare a static budget for the receiving activity for the year.

2. Calculate the cost per receiving order based on annual demand for receiving orders. (Note: Round to the nearest cent.)

Fermi Company

Static Budget

For the Receiving Activity

1
2
3
4
5

Calculate the cost per receiving order based on annual demand for receiving orders. (Note: Round to the nearest cent.)

per receiving order