Problem 1
Thefollowing data is obtained from the general records in the shippingdepartment at Rapid Parcel Delivery Company for August:
Inspecting packages prior to placement on truck takes 1 minuteper package.
Processing paperwork for each shipment (each truck loaded) takes30 minutes.
Loading packages takes 1 minute of labor per package plus anadditional 3 labor hours per truck
Miscellaneous tasks take 2 hours per truck.
Temporary employees to perform all of the above tasks can behired for any amount of hours at a rate of $20 per hour during thesummer (no benefits).
One supervisor is needed for every 1,000 hours of temporaryemployee labor (rounded up).
Supervisors are paid a flat rate of $8,200 per month.
Supervisors divide their time evenly among inspecting,processing, and loading activities, and miscellaneous tasks.
$2,000 per month general department overhead is allocated tomiscellaneous tasks and $4,000 per month to loading, inspecting andprocessing activities.
August will have 24 working days.Rapid Parcel expects to load 12 trucks per day during August. Thereare on average 100 packages per truck.
Required: Prepare a budgetusing the activity-based approach for the costs of inspecting,processing, loading, and miscellaneous activities within theshipping department for August.
Problem 1
Thefollowing data is obtained from the general records in the shippingdepartment at Rapid Parcel Delivery Company for August:
Inspecting packages prior to placement on truck takes 1 minuteper package.
Processing paperwork for each shipment (each truck loaded) takes30 minutes.
Loading packages takes 1 minute of labor per package plus anadditional 3 labor hours per truck
Miscellaneous tasks take 2 hours per truck.
Temporary employees to perform all of the above tasks can behired for any amount of hours at a rate of $20 per hour during thesummer (no benefits).
One supervisor is needed for every 1,000 hours of temporaryemployee labor (rounded up).
Supervisors are paid a flat rate of $8,200 per month.
Supervisors divide their time evenly among inspecting,processing, and loading activities, and miscellaneous tasks.
$2,000 per month general department overhead is allocated tomiscellaneous tasks and $4,000 per month to loading, inspecting andprocessing activities.
August will have 24 working days.Rapid Parcel expects to load 12 trucks per day during August. Thereare on average 100 packages per truck.
Required: Prepare a budgetusing the activity-based approach for the costs of inspecting,processing, loading, and miscellaneous activities within theshipping department for August.
