Calculate the cost of unloading

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Reference no: EM132516640

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:

Activity on Each            Activity

Unloading                        25%

Counting                         40%

Inspecting                       35%

Calculate:

Question 1. Calculate the cost of unloading.

Question 2. Calculate the cost of counting.

Question 3. Calculate the cost of inspection.

Reference no: EM132516640

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