Carbon Company provides the following information about resources:

Required
a. Compute the cost driver rate for each resource.
b. Describe what the term unused resource capacity means.

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Unused Resources Capacity Cost Driver Volume Resources used $ 2,000 1,560 8,000 pounds 340 machine-hours 80 setups 0 1,800 7,600 3,400 2,800 80 purchase orders 50 returns Customer service . . . 320 labor-hours 420 labor-hours Administrative . Resources supplied $98,000 17,880 24,000 21,000 15,600 29,000 28,000 Setups Customer service . . . Administrative