The Receiving Department of Owen Has Three Activities: Unloading, Counting

question 67

Multiple Choice

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:
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Calculate the cost for inspection.

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