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

Refer to the list below for the exact wording of an amount description within your budget.

Amount Descriptions
Factory space, utilities
Salaries
Supplies
Total receiving cost
Workbenches, computers depreciation

Required:

1) 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.)

Fermi Company Static Budget For the Receiving Activity

1
2
3
4
5

2)

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

= $_______________ per receiving order