The receiving department of Owen has three activities: unloading, counting goods, and inspecting. Unloading requires a forklift that is leased for $15,000 per year. The forklift is used only for unloading. The fuel for the forklift is $2,000 per year. Inspection requires special testing equipment that has a depreciation of $500 per year and an operating cost of $1,000 per year. Receiving has four employees who each have an average salary of $35,000 per year. The work distribution matrix for the receiving personnel is as follows:
|
|
Percentage of Time |
|
Activity |
on Each Activity |
|
Unloading |
25% |
|
Counting |
40% |
|
Inspecting |
35% |
Calculate the cost for inspection.
Question 1 options:
|
54,000 |
|
|
56,000 |
|
|
52,000 |
|
|
50,500 |
| Depreciation cost | 500 |
| Operating cost | 1,000 |
| Receiving personnel salary (140,000 x 35%) | 49,000 |
| cost for inspection | $50,500 |
cost for inspection = $50,500
Fourth option is the correct option
The receiving department of Owen has three activities: unloading, counting goods, and inspecting. Unloading requires a...