Boston Home Center (BHC) offers customers the use of a truck at $44 per trip to take purchased merchandise home. BHC reports the following information about the trucks it has for customer usage: Cost Driver Rate Cost Driver Volume Resources used Operation $ 0.55 per mile 45,400 miles Administration 25.00 per trip 1,870 trips Resources supplied Operation $ 35,000 Administration $ 62,000 Required: Compute the cost of unused operation and administration resource capacity for Boston Home Center.
Boston Home Center (BHC) offers customers the use of a truck at $44 per trip to take purchased merchandise home. BHC reports the following information about the trucks it has for customer usage: Cost Driver Rate Cost Driver Volume Resources used Operation $ 0.55 per mile 45,400 miles Administration 25.00 per trip 1,870 trips Resources supplied Operation $ 35,000 Administration $ 62,000 Required: Compute the cost of unused operation and administration resource capacity for Boston Home Center.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Boston Home Center (BHC) offers customers the use of a truck at $44 per trip to take purchased merchandise home. BHC reports the following information about the trucks it has for customer usage:
| Cost Driver Rate | Cost Driver Volume | |||
|---|---|---|---|---|
| Resources used | ||||
| Operation | $ 0.55 | per mile | 45,400 | miles |
| Administration | 25.00 | per trip | 1,870 | trips |
| Resources supplied | ||||
| Operation | $ 35,000 | |||
| Administration | $ 62,000 |
Required:
Compute the cost of unused operation and administration resource capacity for Boston Home Center.
| unused resource capacity | |
| operation | |
| administration |
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