Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

need help please Resource Usage and Supply, Activity Rates, Service Organization EcoBnte Labs performs tests on water samples supplied by outside companies to ensure that

need help please
image text in transcribed
image text in transcribed
Resource Usage and Supply, Activity Rates, Service Organization EcoBnte Labs performs tests on water samples supplied by outside companies to ensure that their waste water meets environmehtal standards. Customers deliver water samples to the tab and receive the lab reports va the Internet. The EcoBrite Labs facility is bult and staffed to handle the processing of 100,000 tests per year. The lab facility cost $200,000 to build and is expected to last 10 years and will have no salvage value. Processing equipment cost $230,000 and has a life expectancy of five years and will have no salvage value. Both facility and equipment are depreciated on a straight-line basis. EcoBrite Labs has five salaried laboratory technicians, each of whom is paid $25,000. In addition to the salaries, facilty, and equipment, EcoBrite Labs expects to spend $48,000 for chemicals and other supplies (assuming 100,000 tests are performed). Last vear, 55,000 tests were performed: Required: 1. Classify the resources associated with the water testing activity into one of the following types: (1) committed resources and (2) fiexible resources. Committed resources Flexble resources: 2. Caiculate the total annual activity rate for the water testing activity. Break the activity rate into fixed and variable components. (Round your answers to three significant digits.) Total water testing rate: Variable activity rate: Faed activity rate: per test per test per test 3. Compute the total activity availability, and break this into activity output and unused activity. Activity availability: tests Activity usage: Unused activity: tests tests 2. Calculate the total annual activity rate for the water testing activity, Break the activity rate into fixed and variable components. (Round your answers to three significant digits.) 3. Compute the total activity availability, and break this into activity output and unused activity. 4. Calculate the total cost of resources supplied, and break this into the cost of activity used and the cost of unused activity. vonok My Won 1. Committed resources are supplied in advance of usage. Flexible resources are supplied as used and needed. 2. Calculate straight-line depreciation and calculate rate. Rate = dollar amount / units of output

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions