Resources Used versus Resources Supplied
Gunnison Supply provides the following information about resources:
|
|
Cost Driver Rate |
Cost Driver Volume |
|
Resources used |
|
|
|
Materials |
$ 12 per pound |
4,000 pounds |
|
Energy |
48 per machine hour |
170 machine hours |
|
Setups |
300 per setup |
40 setups |
|
Purchasing |
240 per purchase order |
40 purchase orders |
|
Customer service |
160 per return |
25 returns |
|
Long term labor |
80 per labor hour |
160 labor hours |
|
Administrative |
60 per labor hour |
210 labor hours |
|
Resources supplied |
|
|
|
Materials |
$48,000 |
|
|
Energy |
9,120 |
|
|
Setups |
12,600 |
|
|
Purchasing |
11,000 |
|
|
Customer service |
8,800 |
|
|
Long term labor |
13,250 |
|
|
Administrative |
13,500 |
|
In addition, sales for the period totaled $150,000.
Required
a. Compute unused resource capacity for each resource.
b. Describe what the term unused resource capacity means.