The following data is obtained from the general records in the shipping department at United Federal…

The following data is obtained from the general records in the
shipping department at United Federal Delivery Company for
August:
Inspecting packages prior to placement on truck takes 1 minute
per package. Processing paperwork for each shipment (each truck
loaded) takes 30 minutes.
Loading packages takes 1 minute of labor per package plus an
additional 3 labor hours per truck
Miscellaneous tasks take 2 hours per truck.
Temporary employees to perform all of the above tasks can be
hired for any amount of hours at a rate of $20 per hour during the
summer (no benefits).
One supervisor is needed for every 1,000 hours of temporary
employee labor (rounded up).
Supervisors are paid a flat rate of $4,100 per month.
Supervisors divide their time evenly among inspecting,
processing, and loading activities, and miscellaneous tasks.
$1,000 per month general department overhead is allocated to
miscellaneous tasks and $2,000 per month to loading, inspecting and
processing activities.
August will have 12 working days. United Federal expects to load
6 trucks per day during August. There are on average 100 packages
per truck.
Required:

Prepare a budget using the activity-based approach for the costs of
inspecting, processing, loading,
and miscellaneous activities within the shipping department for
August.

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