Powen
the Receiving Department of Powen Has Three Activities: Unloading

question 40

Multiple Choice

Powen
The receiving department of Powen 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: $$\begin{array}{l}\begin{array} { l c } &\text { Percentage of } \mathrm { T } \text { ime }\\\text { Activity } & \text { on Each Activity } \\\text { Unloading } & 25 \% \\\text { Counting } & 40 \% \\\text { Inspecting } & 35 \%\end{array}\end{array}$$
-Refer to Powen. What is the cost for inspection?

• A) $50,500
• B) $52,000
• C) $54,000
• D) $56,000

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