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: 130,600

	Resources needed:
A.	6 workers capable of completing 24,700 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 $27,600 for each worker
B.	Supplies (paper, greasemarkers, small tools, rags) expected to cost $0.70 per receiving order
C.	Workbenches, dollies, computers, etc.; depreciation $14,800 per year
D.	Space for the receiving dock, utilities; $9,900 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.)

Prepare a static budget for the receiving activity for the year. (Note: Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.)

Score: 45/50

Fermi Company

Static Budget

For the Receiving Activity

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

----------------------per receiving order