Fermi Company decided to look more closely at the materials receiving activity in its factory. The driver
Question:
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
Required:
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.
Fantastic news! We've located the answer you've been seeking!
Step by Step Answer:
Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
Question Posted: