Question
Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of $25,050 and is capable of processing as many
Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of $25,050 and is capable of processing as many as 6,400 purchase orders per year. Each clerk uses a PC and laser printer in processing orders. Time available on each PC system is sufficient to process 6,400 orders per year. The cost of each PC system is $1,300 per year. In addition to the salaries, Elliott spends $28,160 for forms, postage, and other supplies (assuming 25,600 purchaseorders are processed). During the year, 24,950 orders were processed.
3.Calculate the total cost of resources supplied (activity cost), and break this into the cost of activity used and the cost of unused activity. When required, round your answers to the nearest dollar. If required, round your intermediate calculations to five decimal places.
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