Read the Following Three Situations

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.

Correct Answer:

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Situation I is an example of a committed...

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