Question: For the following activities and their associated resources identify the

For the following activities and their associated resources, identify the following:
(1) A cost driver,
(2) Flexible resources, and
(3) Committed resources. Also, label each resource as one of the following with respect to the cost driver:
(a) Variable and
(b) Fixed.
Activity .... Resource Description
Maintenance ..... Equipment, labor, and parts
Inspection ..... Test equipment, inspectors (each inspector can inspect five batches per day), and units inspected (process requires destructive sampling)*
Packing .... Materials, labor (each packer places five units in a box), and conveyor belt
Payable processing ... Clerks, materials, equipment, and facility
Assembly .... Conveyor belt, supervision (one supervisor for every three assembly lines), direct labor, and materials
* Destructive sampling occurs whenever it is necessary to destroy a unit as inspection occurs.

  • CreatedSeptember 01, 2015
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