Gruber Industries provides the following information about resources: Cost Driver RateCost Driver VolumeResources used     Materials$12 15,000poundsEnergy 48 675machine hoursSetups 300 150setupsPurchasing 240 160purchase ordersCustomer service 160 175returnsLong-term labor 80 640labor hoursAdministrative 60 840administrative hours    Resources supplied   Materials$192,000 Energy 36,480 Setups 50,400 Purchasing 44,000 Customer service 35,200 Long-term labor 53,000 Administrative 54,000 In addition, sales for the period totaled $600,000.Required:Compute the unused resource capacity for each preceding item.

What will be an ideal response?



  Resources UsedResources SuppliedUnused Capacity
Materials$12 × 15,000$180,000 $192,000 $12,000 
Energy48 × 675 32,400  36,480  4,080 
Setups300 × 150 45,000  50,400  5,400 
Purchasing240 × 160 38,400  44,000  5,600 
Customer service160 × 175 28,000  35,200  7,200 
Long-term labor80 × 640 51,200  53,000  1,800 
Administrative60 × 840 50,400  54,000  3,600 

Business

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