Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger

تمرين 38

Static Budget for an Activity
Madison Company decided to look more closely at the inspection activity in its factory. The following information for a year was collected:
Demand for inspections: 170,000
Resources needed:
a. 6 inspectors, capable of inspecting 30,000 units per year; salary is $32,000 each
b. Supplies (small tools, oil, rags) expected to cost $0.70 per inspection
c. Workbenches, computers, etc.; depreciation $18,300 per year
d. Factory space for the inspection station, utilities; $12,600 per year
Required:
Prepare a static budget for the inspection activity for the year.