Gundy Press reports the following information about resources. At the beginning

Question

Gundy Press reports the following information about resources. At the beginning of the year, Gundy estimated it would spend $42,000 for setups and $21,000 for clerical.   Compute unused resource capacity for setups & clerical for Gundy Press.

                          Cost Driver                                  Rate            Volume Resources used:      Setups $250             175 runs      Clerical                         30         500 pages types Resources supplied:      Setups $45,000      Clerical $20,000

Explanation / Answer

Hi,

Please find the answer as follows:

Unused Resource Capacity for Setups = 45000 - 250*175 = 1250

Unused Resource Capacity for Clerical = 20000 - 30*500 = 5000

Thanks.

Related Questions

Navigate

• Browse (All)
• Browse G
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.