Question

The following data is obtained from the general records in theshipping department at Rapid Parcel Delivery Company for August: •Inspecting packages prior to placement on truck takes 1 minute perpackage. • Processing paperwork for each shipment (each truckloaded) takes 30 minutes. • Loading packages takes 1 minute oflabor per package plus an additional 3 labor hours per truck •Miscellaneous tasks take 2 hours per truck. • Temporary employeesto perform all of the above tasks can be hired for any amount ofhours at a rate of $20 per hour during the summer (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 amonginspecting, processing, and loading activities, and miscellaneoustasks. • $2,000 per month general department overhead is allocatedto miscellaneous tasks and $4,000 per month to loading, inspectingand processing activities. August will have 24 working days. RapidParcel expects to load 12 trucks per day during August. There areon average 100 packages per truck. Required: Prepare a budget usingthe activity-based approach for the costs of inspecting,processing, loading, and miscellaneous the shipping department forAugust.