Question: Static Budget for an Activity Madison Company decided to look more closely at the inspection activity in its factory. The following information for a year was collected:
Demand for inspections: 170,000
Resources needed: a. 6 inspectors, capable of inspecting 30,000 units per year; salary is $32,000 each
b. Supplies (small tools, oil, rags) expected to cost $0.70 per inspection
c. Workbenches, computers, etc.; depreciation $18,300 per year
d. Factory space for the inspection station, utilities; $12,600 per year.
Required: Prepare a static budget for the inspection activity for the year.