500 - $324,000) is shown as costs of unused but available distribution capacity.
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Plastim’s ABC system does not allocate the costs of unused capacity to products so as not
<br>
to burden the product costs of S3 and C5 with the cost of resources not used by these products. Instead, the system highlights the amount of unused capacity as a separate line item to
<br>
alert managers to reduce these costs, such as by redeploying labor to other uses or laying off
<br>
workers. Chapter 9 discusses issues related to unused capacity in mor