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# Cost 12-13 - Actual Costs Budgeted Costs Budget Variance...

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P12-13 Requirement 1: Fixed Variable Salaries: \$1,125,000 Lease: \$96,000 Fuel: \$0.18 Crates: \$1.20 \$1,221,000 \$1.38 Requirement 2: Capacity= minimum forklift and operator capacity Forklift capacity= 3 x 24 x 280 x 8 = 161280 moves = 80,640 cycles Operator capacity= 3 x 25 x 2,000 = 150,000 moves = 75,000 cycles x .9 = 67,500 cycles Activity Output Salaries: \$1,125,000.00 Lease: \$96,000.00 Fuel: \$12,150.00 Crates: \$81,000.00 Budgeted costs = \$1,314,150.00
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Unformatted text preview: Actual Costs Budgeted Costs Budget Variance \$1,371,650.00-\$1,314,150.00 = \$57,500.00 Requirement 3: \$1,221,000 Requirement 4: Fixed Variable Activity Output (25,00 cycles) Salaries: \$405,000.00 \$405,000.00 Lease: \$36,000.00 \$36,000.00 Fuel: \$0.18 \$30,000.00 Crates: \$1.20 \$4,500.00 \$441,000.00 \$1.38 \$475,500.00 The cost of the activity has been reduced. (From 1,314,150 to 475,000)...
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