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Resource Usage and Supply Activity Rates Service Organization Eccente Labs performs tests on water samples supplied by outside companies to ensure that their waste water meets environmental standards. Customers deliver water samples to the lab and receive the lab reports via the Internet. The Ecotrite Labs facility is built and stated to handle the processing of 100,000 tests per year. The tab faolity cost $300,000 to build and is expected to last 10 years and will save no salvage value Processing equipment cost $280,000 and has fe expectancy of five years and will have a salvage value Both facility and equipment are deprecated on a straight line basis, EcoBite Labs has been salaried laboratory technicians, each of whom is paid $35,000. In addition to the salaries taci and equipment, Ecolite Labe expects to spend 555,000 for chemicals and other supplies (assuming 100,000 tests are performed) Last year, 87,000 tests were performed Required: 1. Classify the resources associated with the water testing activity into one of the following types: (1) committed resources and (7) Haxible resources Committed resources Lab facility, equipment and technician salaries Flexible resources Chemicals and supplies 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.) Total water testing rate: 3.84 XP Incorrect Variable activity rate: 5 3.84 X per test Fixed activity rate: 3.29 X per test 3. Compute the total activity availability, and break this into activity output and unused activity. Activity availability: 100,000 tests Activity usage 99,000 X tests Unused activity 15,000 X tests 4. Calculate the total cost of resources supplied, and break this into the cost of activity used and the cost of unused activity Cost of activity supplied 375,750 X Cast of activity used: $. 326,400 X Cost of unused activity: 49,350 X 1. Committed resources are supplied in advance of usage. Flexible resources are supplied as used and needed 2, 3 and 4. See Cornerstone 3.2 Previous Next > Check My Work