The receiving department of Owen has three activities: unloading, counting goods, and inspecting. Unloading requires...
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Accounting
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
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