South Beach Industries reports the following information about resources.At the beginning of the year,South Beach estimated it would spend $180,000 for materials,$42,000 for purchasing,$35,000 for setups,and $36,000 for repairs.Compute unused resource capacity for setups for South Beach.
A) $2,500.
B) $1,080.
C) $1,500.
D) $1,000.

Question

South Beach Industries reports the following information about resources.At the beginning of the year,South Beach estimated it would spend $180,000 for materials,$42,000 for purchasing,$35,000 for setups,and $36,000 for repairs.Compute unused resource capacity for setups for South Beach. 
A) $2,500. 
B) $1,080. 
C) $1,500. 
D) $1,000.

Quizplus · Accepted Answer

To compute the unused resource capacity for setups, we need to subtract the actual amount spent on setups from the estimated amount. 
Unused resource capacity for setups = $35,000 - actual amount spent on setups 
Since the question only provides us with estimated amounts and no actual amounts, we cannot compute the exact answer. However, we can assume that some amount was spent on setups during the year, and the actual amount spent must be less than or equal to the estimated amount. 
Therefore, the maximum amount of unused resource capacity for setups would be $35,000 - $0 = $35,000, and the minimum would be $35,000 - $34,500 (assuming $500 was spent on setups during the year) = $500. 
Out of the answer choices provided, the closest option to this range is C, $1,500. However, we cannot accurately determine the exact amount of unused resource capacity for setups without additional information.

South Beach Industries Reports the Following Information About Resources