Resource Usage and Supply, Activity Rates, ServiceOrganization

EcoBrite Labs performs tests on water samples supplied byoutside companies to ensure that their waste water meetsenvironmental standards. Customers deliver water samples to the laband receive the lab reports via the Internet. The EcoBrite Labsfacility is built and staffed to handle the processing of 100,000tests per year. The lab facility cost $160,000 to build and isexpected to last 10 years and will have no salvage value.Processing equipment cost $250,000 and has a life expectancy offive years and will have no salvage value. Both facility andequipment are depreciated on a straight-line basis. EcoBrite Labshas six salaried laboratory technicians, each of whom is paid$30,000. In addition to the salaries, facility, and equipment,EcoBrite Labs expects to spend $50,000 for chemicals and othersupplies (assuming 100,000 tests are performed). Last year, 86,000tests were performed.

Required:

1. Classify the resources associated with thewater testing activity into one of the following types: (1)committed resources and (2) flexible resources.

Committed resources: Lab facility, equipment and techniciansalaries  
Flexible resources:      Chemicals andsupplies

2. Calculate the total annual activity rate forthe water testing activity. Break the activity rate into fixed andvariable components. (Round your answers to the nearest cent.)

Total water testing rate:	$ per test
Variable activity rate:	$ per test
Fixed activity rate:	$ per test

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

Activity availability:	tests
Activity usage:	tests
Unused activity:	tests

4. Calculate the total cost of resourcessupplied, and break this into the cost of activity used and thecost of unused activity.

Cost of activity supplied:	$
Cost of activity used:	$
Cost of unused activity:	$