Question

In: Accounting

1) Conlon Enterprises reports the following information about resources. Cost Driver Rate Cost Driver Volume Resources...

1) Conlon Enterprises reports the following information about resources.

	Cost Driver Rate			Cost Driver Volume
Resources used
Setups	$	375	per run	350	runs
Clerical		45	per page	1,000	pages
Resources supplied
Setups	$	135,000
Clerical		60,000

Required:

Compute unused setup and clerical resource capacity for Conlon Enterprises.

	Unused Resource Capacity
Setups
Clerical

2)

Tri-State Mill uses a special sander to finish lumber. Data on the sander and its usage follow.

	Cost Driver Rate			Cost Driver Volume
Resources used
Energy	$	0.90	per machine-hour	6,000	machine-hours
Repairs	$	16.00	per job	600	jobs
Resources supplied
Energy	$	6,900
Repairs		12,000

Required:

Compute unused resource capacity in energy and repairs for Tri-State Mill.

Unused Resource Capacity

Energy -

Repairs-

Expert Solution

1.

	Unused resource capacity
Setups = $135,000-(350*$375)	3,750
Clerical = $60,000-(1,000*$45)	15,000

2.

	Unused resource capacity
Energy = $6,900-(6,000*$0.90)	1,500
Repairs = $12,000-(600*$16.00)	2,400

ekkarill92 answered 2 years ago

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