Question

Madison Company decided to look more closely at the inspection activity in its factory. The following information for a year was collected:
Demand for inspections: 170,000
Resources needed:
a. 6 inspectors, capable of inspecting 30,000 units per year; salary is $ 32,000 each
b. Supplies (small tools, oil, rags) expected to cost $ 0.70 per inspection
c. Workbenches, computers, etc.; depreciation $ 18,300 per year
d. Factory space for the inspection station, utilities; $ 12,600 per year
Required:
Prepare a static budget for the inspection activity for the year.


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  • CreatedSeptember 22, 2015
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