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[The following information applies to the questions displayed below.] Carbon Company provides the following information about resources: Unused Resources Capacity Cost Driver Volume Resources used
[The following information applies to the questions displayed below.]
Carbon Company provides the following information about resources:
Unused Resources Capacity | Cost Driver Volume | |||||||||||||||||||||||||||||||
Resources used | ||||||||||||||||||||||||||||||||
Materials | $ | 2,000 | 9,000 | pounds | ||||||||||||||||||||||||||||
Energy | 3,520 | 390 | machine-hours | |||||||||||||||||||||||||||||
Setups | -0- | 86 | setups | |||||||||||||||||||||||||||||
Purchasing | 7,700 | 80 | purchase orders | |||||||||||||||||||||||||||||
Customer service | 10,400 | 60 | returns | |||||||||||||||||||||||||||||
Long-term labor | 5,600 | 350 | labor-hours | |||||||||||||||||||||||||||||
Administrative | 5,400 | 440 | labor-hours | |||||||||||||||||||||||||||||
Resources supplied | ||||||||||||||||||||||||||||||||
Materials | $ | 101,000 | ||||||||||||||||||||||||||||||
Energy | 21,460 | |||||||||||||||||||||||||||||||
Setups | 25,800 | |||||||||||||||||||||||||||||||
Purchasing | 26,900 | |||||||||||||||||||||||||||||||
Customer service | 19,400 | |||||||||||||||||||||||||||||||
Long-term labor | 30,800 | |||||||||||||||||||||||||||||||
Administrative | 29,600 | |||||||||||||||||||||||||||||||
Required: a. Compute the cost driver rate for each resource.
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