Question

28 My Subscriptions et le E Business owned Product and Department Budgets Using Activity-Based Approach The following data are from the general records of the Loading Departm Jonah 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 $22 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 55,400 per month • Other overhead of the department amounts to $10,800 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 15 trucks per day. (Round answers two decimal places.) Jonah Freight Loading Department Activity Based Budget For the Month of November Activities Cleaning Trucks Docks 50 Total cleaning time 150 100 Instructions Loading trucks Total loading time 150 450 500

Answer 1

Answer is given below

Jonah Freight Loading Department Activity Based Budget For the Month of November Activities hours Cleaning 100 Trucks (20 Working Days X 15 trucks X 20 minutes) Docks (20 Working Days X 15 trucks X 10 minutes) Total Cleaning time-hours 150 150 Loading Shipping documents and instructions (20 Working Days X 15 trucks X 30 minutes) Loading trucks (20 Working Days X 15 trucks X 1hour 30 minutes) Total Loading time-hours 450 600 Cost Budget Cleaning Labour- $ 22 per hour Overhead - 20% Supervision $3,300.00 $2,160.00 $540.00 $6,000.00 Loading Labour- $ 22 per hour Overhead - 80% Supervision $13,200.00 $8,640.00 $3,240.00 $25,080.00 $31,080.00 Total