Activity Availability, Capacity Used, Unused Capacity

Corazon Manufacturing Company has a purchasing department staffed by five purchasing agents. Each agent is paid $35,000 per year and is able to process 7,000 purchase orders. Last year, 31,150 purchase orders were processed by the five agents.

Required:

1. Calculate the activity rate per purchase order.

$ per purchase order

2. Calculate, in terms of purchase orders, the:

a.	Total activity availability	purchase orders
b.	Unused capacity	purchase orders

3. Calculate the dollar cost of:

a.	Total activity availability	$
b.	Unused capacity	$