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Resource Supply and Usage, Special Order, Relevancy Elliott, Inc., has four salaried clerks to process...

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Accounting

Resource Supply and Usage, Special Order, Relevancy

Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of $23,200 and is capable of processing as many as 7,000 purchase orders per year. Each clerk uses a PC and laser printer in processing orders. Time available on each PC system is sufficient to process 7,000 orders per year. The cost of each PC system is $1,200 per year. In addition to the salaries, Elliott spends $30,240 for forms, postage, and other supplies (assuming 28,000 purchase orders are processed). During the year, 27,400 orders were processed.

2. Compute the total activity availability, and break this into activity usage and unused activity.

Activity availability: purchase orders
Activity usage: purchase orders
Unused activity: purchase orders

3. Calculate the total cost of resources supplied (activity cost), and break this into the cost of activity used and the cost of unused activity. When required, round your answers to the nearest dollar. If required, round your intermediate calculations to five decimal places.

Activity cost:
Cost of activity used:
Cost of unused activity:

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