Question:
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.