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.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter25: Departmental Accounting

Section: Chapter Questions

Problem 4SEA: ALLOCATING OPERATING EXPENSEMILES DRIVEN Mercado Lopez owns a furniture store that offers free...

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	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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