Solved: EcoBrite Labs performs tests on water samples

supplied by outside
EcoBrite Labs performs tests on water samples supplied by outside

EcoBrite Labs performs tests on water samples supplied by outside companies to ensure that
their waste water meets environmental standards. Customers deliver water samples to the lab
and receive the lab reports via the Internet. The EcoBrite Labs facility is built and staffed to
handle the processing of 100,000 tests per year. The lab facility cost $160,000 to build and is
expected to last 10 years and will have no salvage value. Processing equipment cost $250,000
and has a life expectancy of five years and will have no salvage value. Both facility and
equipment are depreciated on a straight-line basis. EcoBrite Labs has six salaried laboratory
technicians, each of whom is paid $30,000. In addition to the salaries, facility, and equipment,
EcoBrite Labs expects to spend $50,000 for chemicals and other supplies (assuming 100,000
tests are performed). Last year, 86,000 tests were performed.

Required:

1. Classify the resources associated with the water testing activity into one of the following
types: (1) committed resources and (2) flexible resources.

2. Calculate the total annual activity rate for the water testing activity. Break the activity rate into
fixed and variable components.

3. Compute the total activity availability, and break this into activity output and unused activity.

4. Calculate the total cost of resources supplied, and break this into the cost of activity used and
the cost of unused activity.

EcoBrite Labs performs tests on water samples supplied by outside

ANSWER
https://solvedquest.com/ecobrite-labs-performs-tests-on-water-samples-supplied-by-outside/

Reach out to freelance2040@yahoo.com for enquiry.

Powered by TCPDF (www.tcpdf.org)