Lifter Company uses forklifts to move materials from the store area to the production floor. The company has four forklifts, which are fully used 16 hours per day (making five moves per hour) . The company works 300 days per year, running two 8-hour shifts per day. The forklift operators work 2,000 hours per year and are paid an annual salary of $45,000.
According to a recent study, each forklift uses 0.25 litres of fuel per move. The cost of fuel is $2.00 per litre.
-Refer to the Figure.Assume that the labour market does not permit the hiring of part-time forklift operators.What is the salary budget for moving materials?
A) $135,000
B) $180,000
C) $360,000
D) $450,000
Correct Answer:
Verified
Q42: Price changes of variable overhead items are
Q76: Just Bags produces leather purses. Just
Q77: Bridgestone Company has developed the following
Q78: Jewel Company calculates its predetermined rates
Q79: Cannon Company's standard fixed overhead cost is
Q80: Kelsey, Inc. produces plastic grocery bags. Kelsey
Q82: Newby Company uses an activity-based costing
Q83: Jewel Company calculates its predetermined rates
Q84: Jewel Company calculates its predetermined rates
Q85: When overhead is applied on the basis
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents