Using Activity-Based Approach The following data are from the general records of
ID: 2451699 • Letter: U
Question
Using Activity-Based Approach The following data are from the general records of the Loading Department of Bowman Freight Company for November.
Cleaning incoming trucks, 20 minutes.
Obtaining and reviewing shipping documents for loading truck and instructing loaders, 30 minutes.
Loading truck, 1 hour and 30 minutes.
Cleaning shipping dock and storage area after each loading, 10 minutes.
Employees perform both cleaning and loading tasks and are currently averaging $18 per hour in wages and benefits.
The supervisor spends 10 percent of her time overseeing the cleaning activities; 60 percent overseeing various loading activities; and the remainder of her time making general plans and managing the department. Her current salary is $4,500 per month.
Other overhead of the department amounts to $9,000 per month, 20 percent for cleaning and 80 percent for loading.
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 14 trucks per day. (Round answers two decimal places.)
Bowman FreightLoading Department Activity-Based Budget
For the Month of November Activities: Cleaning: Trucks _______ hours Docks _______ hours Total cleaning time _______ hours Loading: Instructions _______ hours Loading trucks _______ hours Total loading time _______ hours Budget: Cleaning: Labor $_______ Overhead _______ Supervision _______ $_______ Loading: Labor _______ Overhead _______ Supervision _______ _______ Total $_______
Explanation / Answer
Answer:
Bowman Freight Loading Department Activity-Based Budget For the Month of November Activities: Cleaning: Trucks 0.33 hours Docks 0.167 hours Total cleaning time 0.4967 hours Loading: Instructions 0.5 hours Loading trucks 1.5 hours Total loading time 2 hours Budget: Cleaning: Labor 4500 Overhead 1800 Supervision 450 6750 Loading: Labor 4500 Overhead 7200 Supervision 2700 14400 Total 21150Related Questions
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