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October 24, 2014

Homework Help: Managerial accounting

Posted by Anonymous on Monday, January 7, 2013 at 10:31pm.

[Figure 5-1]. - 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 Percentage of Time on Each Activity

Unloading 25%

Counting 40%

Inspecting 35%

Refer to [Figure 5-1].

(5a) - Calculate the cost of unloading.

(5b) - Calculate the cost of counting

(5c) - Calculate the cost for inspection

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