Question

South Beach Industries reports the following information about resources. At the beginning of the year, South Beach estimated it would spend $219,800 for materials, $46,000 for purchasing, $39,000 for setups, and $40,000 for repairs.

	Cost Driver
	Rate			Volume
Resources used:
Materials	$	12	/lb	18,550	lbs
Purchasing	$	260	/purchase order	180	purchase orders
Setups	$	440	/setup	85	setups
Repairs	$	38	/Job	650	jobs
Resources supplied:
Materials	$	231,900
Purchasing	$	51,500
Setups	$	39,100
Repairs	$	30,300

The unused resource capacity for materials for South Beach is:

Multiple Choice

• $9,300.

• $2,800.

• $12,100.

• $19,325.

Answer 1

Unused resource capacity for materials for South Beach = Materials supplied - Materials used

= $231900-18550*12

= $9,300