Boston Home Center (BHC) offers customers the use of a truck at $40 per trip to take
Question:
Boston Home Center (BHC) offers customers the use of a truck at $40 per trip to take purchased merchandise home. BHC reports the following information about the trucks it has for customer usage:
Required
Compute the cost of unused operation and administration resource capacity for Boston Home Center.
Transcribed Image Text:
Resources used Operation ..... Administration Resources supplied Operation .... Administration Cost Driver Rate $.55 per mile $25.00 per trip $33,000 $60,000 Cost Driver Volume 45,000 miles 1,850 trips
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