Question
The receiving department has three activities: unloading, counting goods, and inspecting. Unloading uses a forklift that is leased for $15,000 per year. The forklift is
The receiving department has three activities: unloading, counting goods, and inspecting. Unloading uses a forklift that is leased for $15,000 per year. The forklift is used only for unloading. The fuel for the forklift is $3,600 per year. Other operating costs (maintenance) for the forklift total $1,500 per year. Inspection uses some special testing equipment that has depreciation of $1,200 per year and an operating cost of $750. Receiving has three employees who have an average salary of $50,000 per year. The work distribution matrix for the receiving personnel is as follows:
Activity | Percentage of Time on Each Activity |
Unloading | 40% |
Counting | 25 |
Inspecting | 35 |
No other resources are used for these activities.
Required:
1. Calculate the cost of each activity.
Unloading | $ |
Counting | $ |
Inspecting | $ |
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