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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