Lifter Company Uses Forklifts to Move Materials from the Store

question 84

Multiple Choice

Lifter Company uses forklifts to move materials from the store area to the production floor. The company has four forklifts, which are fully used 16 hours per day (making five moves per hour) . The company works 300 days per year, running two 8-hour shifts per day. The forklift operators work 2,000 hours per year and are paid an annual salary of $45,000.
According to a recent study, each forklift uses 0.25 litres of fuel per move. The cost of fuel is $2.00 per litre.
-Refer to the Figure.Suppose that the actual moves made are 80% of the forklifts' capacity.What is the after-the-fact budgeted fuel cost?

• A)$9,600
• B)$38,400
• C)$48,000
• D)$153,600

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Definitions:

Corporation's Bylaws

The official rules and regulations that govern the management and operations of a corporation, typically established by its board of directors.

Shareholders' Resolution

A formal decision or expression of opinion made by the shareholders of a corporation, usually made during a shareholder meeting.

Corporate Law

A body of law that regulates the formation, governance, dissolution, and administration of corporations.

Sole Proprietorship

A business structure where a single individual owns, manages, and is personally responsible for all aspects of the business.