The Receiving Department has three activities: unloading, counting goods, and in

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 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 a 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:

1. Calculate the cost of each activity.

Unloading $ Counting $ Inspecting $ 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 a 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:

Explanation / Answer

Total Salary = 50,000*3 = 1,50,000

Distributing according to its times then salary cost will be Multiplying with their time spent

Unloading = 60,000

Coutning = 37, 500
Inspecting = 52500

Now total costing will be

For Unloading : 15000+3600+1500+60000 = 80100

Counting : 37500
Inspection : 1950 +52500 = 54450

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