Activity Capacity Management Uchdorf Manufacturing just completed a study of its purchasing activity with the objective of improving its efficiency. The driver for the activity is number of purchase orders. The following data pertain to the activity for the most recent year: Activity supply: five purchasing agents capable of processing 3,300 orders per year (16,500 orders) Purchasing agent cost (salary): $43,500 per year Actual usage: 14,200 orders per year Value-added quantity: 9,250 orders per year Required: 1. Calculate the volume variance. Round your intermediate calculation to two decimal places and the final answer to the nearest dollar. 2. Calculate the unused capacity variance. Round your intermediate calculation to two decimal places and the final answer to the nearest dollar. ▾ 3. What if the actual usage drops to 12,000 orders? What effect will this have on capacity management? Round your intermediate calculation to two decimal places and the final answer to the nearest dollar.
Activity Capacity Management Uchdorf Manufacturing just completed a study of its purchasing activity with the objective of improving its efficiency. The driver for the activity is number of purchase orders. The following data pertain to the activity for the most recent year: Activity supply: five purchasing agents capable of processing 3,300 orders per year (16,500 orders) Purchasing agent cost (salary): $43,500 per year Actual usage: 14,200 orders per year Value-added quantity: 9,250 orders per year Required: 1. Calculate the volume variance. Round your intermediate calculation to two decimal places and the final answer to the nearest dollar. 2. Calculate the unused capacity variance. Round your intermediate calculation to two decimal places and the final answer to the nearest dollar. ▾ 3. What if the actual usage drops to 12,000 orders? What effect will this have on capacity management? Round your intermediate calculation to two decimal places and the final answer to the nearest dollar.
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![## Activity Capacity Management
Uchdorf Manufacturing has recently completed a study of its purchasing activity with the objective of enhancing efficiency. The primary driver for this activity is the number of purchase orders. The following data is relevant for the activity in the most recent year:
- **Activity supply:** Five purchasing agents capable of processing 3,300 orders per year each (a total of 16,500 orders).
- **Purchasing agent cost (salary):** $43,500 per year
- **Actual usage:** 14,200 orders per year
- **Value-added quantity:** 9,250 orders per year
### Required:
1. **Calculate the volume variance.**
_Round your intermediate calculations to two decimal places and the final answer to the nearest dollar._
- Input Box for Answer: [_________]
- Unit: [Dropdown Menu]
2. **Calculate the unused capacity variance.**
_Round your intermediate calculations to two decimal places and the final answer to the nearest dollar._
- Input Box for Answer: [_________]
- Unit: [Dropdown Menu]
3. **What if the actual usage drops to 12,000 orders?**
_What effect will this have on capacity management? Round your intermediate calculations to two decimal places and the final answer to the nearest dollar._
- Input Box for Answer: [_________]
- Unit: [Dropdown Menu]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5e61f1c8-5f75-42be-83a4-b313e68cb3a1%2F73a8df59-a2b4-4214-bb97-2bc0e8d3527d%2F4spovvq_processed.png&w=3840&q=75)
Transcribed Image Text:## Activity Capacity Management
Uchdorf Manufacturing has recently completed a study of its purchasing activity with the objective of enhancing efficiency. The primary driver for this activity is the number of purchase orders. The following data is relevant for the activity in the most recent year:
- **Activity supply:** Five purchasing agents capable of processing 3,300 orders per year each (a total of 16,500 orders).
- **Purchasing agent cost (salary):** $43,500 per year
- **Actual usage:** 14,200 orders per year
- **Value-added quantity:** 9,250 orders per year
### Required:
1. **Calculate the volume variance.**
_Round your intermediate calculations to two decimal places and the final answer to the nearest dollar._
- Input Box for Answer: [_________]
- Unit: [Dropdown Menu]
2. **Calculate the unused capacity variance.**
_Round your intermediate calculations to two decimal places and the final answer to the nearest dollar._
- Input Box for Answer: [_________]
- Unit: [Dropdown Menu]
3. **What if the actual usage drops to 12,000 orders?**
_What effect will this have on capacity management? Round your intermediate calculations to two decimal places and the final answer to the nearest dollar._
- Input Box for Answer: [_________]
- Unit: [Dropdown Menu]
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