Denim Products reports the following information about resources. At the beginning of the year, Denim estimated it would spend $84,000 for setups and $41,000 for quality testing. Cost Driver RateVolumeResources used: Setups$250/run350runsQuality testing$40/test900testsResources supplied: Setups$90,000 Quality testing$40,000 The unused resource capacity for setups for Denim Products is:
A. $6,000.
B. $3,500.
C. $1,000.
D. $2,500.
Answer: D
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