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Carbon Company provides the following information about resources: Unused Resources Capacity Cost Driver Volume Resources used Materials $ 2,600 10,000 pounds Energy 1,660 400 machine-hours
Carbon Company provides the following information about resources:
Unused Resources Capacity | Cost Driver Volume | ||||
Resources used | |||||
Materials | $ | 2,600 | 10,000 | pounds | |
Energy | 1,660 | 400 | machine-hours | ||
Setups | -0- | 86 | setups | ||
Purchasing | 1,100 | 100 | purchase orders | ||
Customer service | 7,400 | 60 | returns | ||
Long-term labor | 4,230 | 330 | labor-hours | ||
Administrative | 5,900 | 430 | labor-hours | ||
Resources supplied | |||||
Materials | $ | 122,600 | |||
Energy | 21,260 | ||||
Setups | 24,940 | ||||
Purchasing | 26,100 | ||||
Customer service | 15,800 | ||||
Long-term labor | 30,300 | ||||
Administrative | 31,700 | ||||
Exercise 10-46 (Algo) Part a
Required:
a. Compute the cost driver rate for each resource.
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