The activity of moving materials uses four forklifts each leased
The activity of moving materials uses four forklifts, each leased for $18,000 per year. A forklift is capable of making 5,000 moves per year, where a move is defined as a round trip from the plant to the warehouse and back. During the year, a total of 18,000 moves were made. What is the cost of the unused capacity for the moving goods activity?
a. $5,400
b. $1,800
c. $7,200
d. $3,600
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