Fermi Company decided to look more closely at the materials receiving activity in its factory. The driver for receiving is the number of receiving orders. The following information for a year was collected:
Demand for receiving orders: 130,000
Resources needed:
a. 6 workers capable of completing 25,000 receiving orders per year. (The completion of a receiving order requires unloading the materials onto the receiving dock, checking the receiving order against the purchase order and invoice, and carrying the materials to the materials storeroom.) Salary is $ 27,000 for each worker
b. Supplies (paper, grease markers, small tools, rags) expected to cost $ 0.80 per receiving order
c. Workbenches, dollies, computers, etc.; depreciation $ 14,400 per year d. Space for the receiving dock, utilities; $ 9,800 per year
1. Prepare a static budget for the receiving activity for the year.
2. Calculate the cost per receiving order based on annual demand for receiving orders.

  • CreatedSeptember 22, 2015
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