Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Resource Supply and Usage, Special Order, Relevancy Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of $27,300

Resource Supply and Usage, Special Order, Relevancy

Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of $27,300 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 $1,150 per year. In addition to the salaries, Elliott spends $29,808 for forms, postage, and other supplies (assuming 27,600 purchase orders are processed). During the year, 27,050 orders were processed.

PC Systems and Clerks are committed resources.

Forms, Postage, and other Supplies are flexible resources.

1. Compute the total activity availability, and break this into activity usage and unused activity.

Activity availability: purchase orders
Activity usage: purchase orders
Unused activity: purchase orders

2. 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.

Activity cost: $
Cost of activity used: $
Cost of unused activity: $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Internal Auditing Assurance And Consulting Services

Authors: Kurt F. Reding, Paul J. Sobel, Urton L. Anderson, Michael J. Head, Sridhar Ramamoorti, Mark Salamasick, Contributing Writer, Cris Ridd, Richard Tuschman

1st Edition

0894136100, 978-0894136108

More Books

Students also viewed these Accounting questions

Question

Understand the basic theories and concepts of OD

Answered: 1 week ago