Question

South Beach Industries reports the following information about resources. At the beginning of the year, South...

South Beach Industries reports the following information about resources. At the beginning of the year, South Beach estimated it would spend $180,000 for materials, $42,000 for purchasing, $35,000 for setups, and $36,000 for repairs.

Cost Driver
Rate Volume
Resources used
Materials $ 10 /lb 18,350 lbs
Purchasing $ 250 /purchase order 160 purchase orders
Setups $ 450 /setup 80 setups
Repairs $ 36 /job 700 jobs
Resources supplied
Materials $ 192,700
Purchasing $ 44,300
Setups $ 37,500
Repairs $ 30,000

Compute unused resource capacity for repairs for South Beach.

$4,800.

$10,800.

$6,000.

$3,600.

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Answer #1
Unused resource capacity for repairs for South Beach (Resources Supplied - Resource used)
(30000 - 36000)
$6,000
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