Chapter 12, Problem 22E

The activity of moving materials uses four forklifts, each leased for $18,000 per year. A forklift is capable of making 5,000 moves per year, where a move is defined as a round trip from the plant to the warehouse and back. During the year, a total of 18,000 moves were made. What is the cost of the unused capacity for the moving goods activity?

1. a. $5,400
2. b. $1,800
3. c. $7,200
4. d. $3,600