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6 Saratoga Company manufactures jobs to customer specifications. The company is conducting a time-driven activity-based costing study in Its Purchasing Department to better understand how

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6 Saratoga Company manufactures jobs to customer specifications. The company is conducting a time-driven activity-based costing study in Its Purchasing Department to better understand how Purchasing Department labor costs are consumed by individual jobs. To ald the study, the company provided the following data regarding ts Purchasing Department and three of its many Jobsi points Number of enployees Average salary per eeployee Weeks of employment per year Hours worked per veek Practical capacity percentage 25,500 52 40 858 eBook Requisition Bid Minutes per unit of the activity Processing Evaluatios Inspection 45 15 30 Print Job X Job Y Job Nunber of requinitione processed Nunber of bid evaluations Nunber of inspectione References Now assume that Saratoga Company would like to answer the following "what if" question using its time-driven activity-based costing system: Assuming our estimated activity demands for a 0bs in the next period will be as shown below, how will this affect our job costs and our staffing levels within the Purchasing Department? RequisiLLORBd Processing Evaluation Inspect Activity denands for all jobs 8, 600 11,400 14,000 Required: 1. Will the revised activity demands affect the total Purchasing Department labor costs assigned to Job X. Job Y, and Job 2? 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. (Round your answer to 2 decimal places.) 5. Based on the revised activity demands, calculate the impact on expenses of matching capacity with demand (Be sure to round down your potential adjustment in the number of employees to a whole number. Negative amount should be indicated by a minus sign.)

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