Business, 11.02.2020 18:14 shaw2708

Assigning Costs to Activities, Resource Drivers 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 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: Activity Percentage of Time on Each Activity Unloading 40% Counting 25 Inspecting 35 No other resources are used for these activities. Required: 1. Calculate the cost of each activity. Unloading $ Counting $ Inspecting $ 2. Explain the two methods used to assign costs to activities. When the resource is used only by one activity, then direct tracing is possible. When the activities are shared, as in the case of labor, then resource drivers must be used?

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Assigning Costs to Activities, Resource Drivers The receiving department has three activities: unloa...