The Following Three Situations Are Given for Gioulis Architects

question 47

Essay

The following three situations are given for Gioulis Architects:
I. Gioulis Architects employs 10 architects who can supply a capacity of 18,000 billable hours per year. The costs related to these 10 architects amounts to $900,000 or $50 per hour. Last year, the firm billed 17,800 hours. Next year, the firm estimates billing hours to take a slight downturn to 17,000 hours. However, Gioulis plans to retain all 10 architects.
II. Gioulis Architects also employs surveyors on a contract basis. Last year, Gioulis contracted with 8 surveyors to provide surveys for existing projects. Due to the expected downturn for next year, Gioulis will only contract services of 7 surveyors as needed.
III. Gioulis currently leases space in a building at the cost of $36,000 per year. They are outgrowing their space and contemplating a decision to design and build their own building 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.