Read the Following Three Situations

question 80

Essay

Read the following three situations:
I.Clessin Architects employs 10 architects who can supply a capacity of 18,000 billable hours per year. The costs related to these 10 architects amount to \$900,00 ar \$50 per hour. Last year, the firm billed 17,800 haurs. Next year, the Fin estimates billing hours to take a slight downtun to 17,00 hours. However. Clessin plans to retain all 10 architects.
II. Clessin Architects also employs surveyors an a contact basis. Last year, Clessin contracted with o surveyors to provide surveys for existing prajects. Due to the expected downtur for next year, Clessin will contract services of anly 7 surveyors as needed.
III. Clessin currenty leases space in a builling at the cost of \$36,000 per year. The company is outgrowing the space and contemplating a decision to desiprand build its own builling at a cost of \$250,000. The new building would have space for at least 18 architects Identify which resource category relates to each situation under the activity resource usage model and explain your choice.