Resource Usage and Supply, Activity Rates, Service Organization

EcoBrite Labs performs tests on water samples supplied by outside companies to ensure that their waste

water meets environmental standards. Customers deliver water samples to the lab and receive the lab

reports via the Internet. The EcoBrite Labs facility is built and staffed to handle the processing of $100,000$

tests per year. The lab facility cost $$140,000$ to build and is expected to last $10$ years and will have no

salvage value. Processing equipment cost $$240,000$ and has a life expectancy of five years and will have

no salvage value. Both facility and equipment are depreciated on a straight$-$line basis. EcoBrite Labs has

seven salaried laboratory technicians, each of whom is paid $$35,000.$ In addition to the salaries, facility,

and equipment, EcoBrite Labs expects to spend $$47,000$ for chemicals and other supplies $($assuming

$100,000$ tests are performed$).$ Last year, $87,000$ tests were performed.

Required:

Classify the resources associated with the water testing activity into one of the following types: $(1)$

committed resources and $(2)$ flexible resources.

Committed resources:

Flexible resources:

Calculate the total annual activity rate for the water testing activity. Break the activity rate into fixed

and variable components. $($Round your answers to three significant digits.$)$

Total water testing rate:

per test

Variable activity rate:

per test

Fixed activity rate:

per test

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

Activity availability:

Activity usage:

tests

Unused activity:

tests

tests

Calculate the total cost of resources supplied, and break this into the cost of activity used and the cost

of unused activity.

Cost of activity supplied:

Cost of activity used:

Cost of unused activity: