Jefferson Company decided to look more closely at the inspection activity in its factory.
The following information for a year was collected:
Demand for inspections: 130,000
Resources needed:
a. 7 inspectors, capable of inspecting 20,000 units per year. Salary is $35,000 each.
b. Supplies (small tools, oil, rags) expected to cost $0.60 per inspection.
c. Workbenches, computers, etc., depreciation: $16,700 per year.
d. Factory space for the inspection station, utilities: $13,400 per year.

Required:
Prepare a static budget for the inspection activity for the year.