Solution :
1. calculate the activity rate per grooming order
Activity rate <u> Amount paid to agent </u>
Number of grooming order
<u> 28,000 </u>
4,000
Therefore, the activity rate = 7 per grooming order
2. Calculating, in terms of grooming order, the :
a. Total activity availability
Number of grooming orders (A) = 4,000
Number of agents (B) <u> 5 </u>
Total activity availability (A x B) 20,000
b). Total activity availability 20,000
Less: Orders actually processed <u> (17,800) </u>
Unused capacity 2,200
3. calculating the dollar cost of :
a). Amount paid to the agent (A 28,000
Number of agents (B) <u> 5 </u>
Total activity availability in dollars (AxB) 140,000
b). Unused capacity (A) 2,200
Activity rate (B) <u> 7 </u>
Unused capacity in dollars (AxB) 15,400
