Alva Community Hospital has five laboratory technicians responsible for doing a series of standard blood tests. Each technician is paid a salary of $30,000 and is capable of process¬

ing 4,000 tests per year. The lab facility represents a recent addition to the hospital and cost

$300,000 to build. It is expected to last twenty years. Equipment used for the testing cost

$10,000 and has a life expectancy of five years. Both facility and equipment are depreciated on a straight-line basis. In addition to the salaries, facility, and equipment, Alva expects to spend $200,000 for chemicals, forms, power, and other supplies (assuming 20,000 tests are processed). During the year, 16,000 blood tests were run.

Required:

1. Classify the resources associated with the blood-testing activity into one of the follow¬

ing: (1) committed resources, (2) flexible resources 2. Calculate the activity rate for the blood-testing activity. Break the activity rate into fixed and variable components.
3. Compute the total activity availability, and break this into activity output and unused activity.
4. Calculate the total cost of resources supplied, and break this into the cost of activity used and the cost of unused activity.