Question

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 $3,000 per month.

Other overhead of the department amounts to $10,000 per month, 30 percent for cleaning and 70 percent for loading.

Prepare an activity budget for cleaning and loading in the Loading Department for November, assuming 20 working days and the loading of an average of 18 trucks per day.

Bowman Freight Loading Department Activity-Based Budget For the Month of November
Activities:	-	-
Cleaning:		-
Trucks		Answer
		0.00 points out of 1.00
		hours
Docks		Answer
		0.00 points out of 1.00
		hours
Total cleaning time		Answer
		0.00 points out of 1.00
		hours
Loading:
Instructions		Answer
		0.00 points out of 1.00
		hours
Loading trucks		Answer
		0.00 points out of 1.00
		hours
Total loading time		Answer
		0.00 points out of 1.00
		hours
Budget:
Cleaning:
Labor	$Answer
	0.00 points out of 1.00
Overhead	Answer
	0.00 points out of 1.00
Supervision	Answer	$Answer
	0.00 points out of 1.00	0.00 points out of 1.00
Loading:		-
Labor	Answer
	0.00 points out of 1.00
Overhead	Answer
	0.00 points out of 1.00
Supervision	Answer	Answer
	0.00 points out of 1.00	0.00 points out of 1.00
Total		$Answer
		0.00 points out of 1.00

Answer 1

Activities
Cleaning:
Trucks (20 days * 18 trucks * 20 mins / 60 mins)	120
Docks (20 days * 18 trucks * 10 mins / 60 mins)	60
Total cleaning time	180
Loading:
Instructions (20 days * 18 trucks * 30 mins / 60 mins)	180
Loading trucks (20 days * 18 trucks * 1.5 hrs)	540
Total loading time	720
Budget:
Cleaning:
Labor (180 hrs * 18)	3240
Overhead (10000 * 30%)	3000
Supervision (3000 * 10%)	300
Loading:
Labor (720 hrs * 18)	12960
Overhead (10000 * 70%)	7000
Supervision (3000 * 60%)	1800
Total	28300