Question

South Beach Industries reports the following information about resources. At the beginning of the year, South Beach estimated it would spend $186,200 for materials, $57,000 for purchasing, $50,000 for setups, and $51,000 for repairs. Cost Driver Rate Volume $ $ 10/1b 260/purchase order 420/setup 38/Job 19,100 lbs 160 purchase orders 85 setups 600 jobs Resources used Materials Purchasing Setups Repairs Resources supplied Materials Purchasing Setups Repairs $ 199,900 $ 46,450 $ 36,950 $ 36,100 Compute unused resource capacity for materials for South Beach. $13,700. $4,800. $19,990. $8,900

Answer 1

Option is correct. $ 8,900. Calculation: Unused resource capacity for materials - Resources supplied for materials - Resources used for materials) Firstly, we will calculate resources used for materials Resources used for materials & Rate & volume - $10/164 19,000 lbs = $191,000 Now, Unused resource capacity for materials = ($ 199,900 - $191,000) = $ 8,900