Figure 11-6

Multiple Choice

Figure 11-6. Kyle Company uses forklifts to move materials from the storage area to the production floor.There are five forklifts.They are fully used 20 hours per day (making 8 moves per hour) .The company works 320 days per year,running two seven-hour shifts per day.Fork-lift operators work 1,800 hours per year and are paid an annual salary of $56,000.
Based on a recent study each forklift uses 0.45 gallons of fuel per move.The cost of fuel is $3.80 per gallon.
Refer to Figure 11-6.Calculate the fuel budget for the year for moving materials.

A) $436,090
B) $228,300
C) $496,050
D) $312,100
E) $437,760