Resource Usage Model and Cost Behavior

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.

Activity	Cost Driver	Flexible (F) or Committed (C)		Variable or Fixed
Maintenance
		Equipment:
		Labor:
		Parts:
Inspection		Equipment:
		Inspectors:
		Units:
Packing		Materials:
		Labor:
		Belt:
Payable processing		Clerks:
		Materials:
		Equipment:
		Facility
Assembly		Belt:
		Supervisors:
		Direct labor:
		Materials:

Cost Driver options:

Number of batches Number of bills Number of boxes Units produced Maintenance hours