Refer to the data in Exercises 7A-1 and 7A-2. Now assume that Saratoga Company would like to
Question:
Required:
1. How will these revised activity demands affect the total Purchasing Department labor costs assigned to Job X, Job Y, and Job Z? No calculations are necessary
2. Using the revised activity demands, calculate Saratoga's used capacity in minutes.
3. Using the revised activity demands, calculate Saratoga's unused capacity in minutes.
4. Using the revised activity demands, calculate Saratoga's unused capacity in number of employees. (Do not round your answer to a whole number.)
5. Based on the revised activity demands, calculate the impact on expenses of matching capacity with demand. (Be sure to round your potential adjustment in the number of employees to a whole number.)
Step by Step Answer:
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer