Product and department budget using Activity-Based Approach:

The following data are from the general records of the Loading Department of Jonah Freight Company for November.

Cleaning incoming trucks, 30 minutes.

Obtaining and reviewing shipping documents for loading trucks and instructing loaders, 15 minutes.

Loading truck, 1 hour.

Cleaning shipping dock and storage area after each loading, 15 minutes.

Employees perform both cleaning and loading tasks and are currently averaging $25 per hour in wages and benefits.

The supervisor spends 15% of her time overseeing the cleaning activities; 35% overseeing various loading activities; and the remainder of her time making general plans and managing the department. Her current salary is $6,000 per month.

Other overhead of the department amounts to $1,2000 per month, 30% for cleaning and 65% for loading and 5% for administration.

Required:

Prepare an activities budget for cleaning and loading in the Loading Department for November, assuming 20 working days and the loading of an average of 25 trucks.