The resource driver would be the number of computer

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computers. The resource driver would be the number of computer or it could be the number of work stations since they are both the same in this example. Each computer costs $2,000 and since the setup process uses 1 computer and 70% of another we find the total cost to be $3,400. Training and travel is the trickiest of the cost to give a resource driver, but I think the best method would be the amount of time being spent training and traveling for each activity and to cost the industry meetings by the amount of time management supervises the two activities. 20% of the training managers do is spent on training setup employees, which if you allocated the other 40% of traveling done by managers based on time managers supervise the setup employees you come up with 48%. The total cost for training and travel comes to $15,000 and 48% of that is $7,200 allocated to the setup activity. Cost Total Cost Scheduling % Set-up % Manager Salary $55,000 $16,500 30% $38,500 70%
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Employee's Wages $525,000 $120,000 23% $405,000 77% Occupancy Costs $18,000 $9,000 50% $9,000 50% Furniture & Fixtures $2,000 $1,320 66% $680 34% Computers & Software $10,000 $6,600 66% $3,400 34% Training & Travel $15,000 $7,800 52% $7,200 48% Total Costs $625,000 $161,220 26% $463,780 74%
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