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12 April, 13:53

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%

Calculate the cost of unloading.

a.$56,000

b.$50,500

c.$54,000

d.$52,000

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Answers (1)
  1. 12 April, 14:40
    0
    The cost of unloading is $52,000

    Explanation:

    Cost is the cash interest that a corporation has expended on sales and accounting to manufacture it. Within an organization, costs represent the amount of money spent on manufacturing or developing a good or service. Price requires no benefit premium.

    Resource Unloading Equipment $15,000

    Fuel $2,000

    Operating Labour = (25% * [4 $35,000] = $35,000)

    = $35,000

    Total = $35,000+$15,000 + $2,000

    = $52,000
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