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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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