Madison Company decided to look more closely at the inspection activity in its factory. The following information for a year was collected:

Demand for inspections: 170,000

	Resources needed:
A.	6 inspectors, capable of inspecting 30,000 units per year; salary is $32,000 each
B.	Supplies (small tools, oil, rags) expected to cost $0.70 per inspection
C.	Workbenches, computers, etc.; depreciation $18,300 per year
D.	Factory space for the inspection station, utilities; $12,600 per year

	Required:
	Complete a static budget for the inspection activity for the 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 budget variance

Total inspection cost

Total prime cost

Total variable budget

Workbenches, computer depreciation

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

Madison Company

Static Budget

For the Inspection Activity

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