Uchdorf Manufacturing just completed a study of its purchasing activity with the objective of improving its efficiency. The driver for the activity is number of purchase orders. The following data pertain to the activity for the most recent year:

Activity supply: ten purchasing agents capable of processing 2,400 orders per year (24,000 orders)

Purchasing agent cost (salary): $50,300 per year

Actual usage: 22,600 orders per year

Value-added quantity: 13,000 orders per year

Required:

1.Calculate the volume variance. Round your intermediate calculation to two decimal places and the final answer to the nearest dollar.

$

2.Calculate the unused capacity variance. Round your intermediate calculation to two decimal places and the final answer to the nearest dollar.

$

3.What ifthe actual usage drops to 18,000 orders? What effect will this have on capacity management? Round your intermediate calculation to two decimal places and the final answer to the nearest dollar.

$