Resources used versus resources supplied. Selected information about resources for Larry Wong's synthetic oriental rugs is as follows:

a. Compute unused capacity for these items.

b. Write a short report stating why managers should know the difference between resources used and resources supplied. Give examples of how managers could use the information on resources used and resources supplied.

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Resources Used Materials Energy Cost Driver Rate $ 5 Cost Driver Volume 5,000 15 200 Setups 50 30 Purchasing 40 30 Customer Service 50 30 Long-term Labor 40 125 Administrative 50 200 Resources Supplied Materials $25.000 Energy 3,500 Setups 1.750 Purchasing 1.500 Customer Service 1.600 Long-term Labor 6,000 Administrative 12.000