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Resource Supply and Usage, Special Order, Relevancy Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of $23,550
Resource Supply and Usage, Special Order, Relevancy Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of $23,550 and is capable of processing as many as 6,900 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 6,900 orders per year. The cost of each PC system is $1,000 per year. In addition to the salaries, Elliott spends $28,704 for forms, postage, and other supplies (assuming 27,600 purchase orders are processed). During the year, 26,800 orders were processed. Required: 1. Which of the resources associated with purchasing can be classified as flexible resources? Which of the resources associated with purchasing can be classified as committed resources? 2. Compute the total activity availability, and break this into activity usage and unused activity. 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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