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Weisgarber Corporation is conducting a time-driven activity-based costing study in its Customer Service Department. The company has provided the following data to aid in that study:
Weisgarber Corporation | |||
Customer Service Department | |||
Data Inputs | |||
Resource Data: | |||
Number of employees | 24 | ||
Average salary per employee | $ | 37,710 | |
Weeks of employment per year | 50 | ||
Minutes available per week (40 hours 60 minutes) | 2,400 | ||
Practical capacity percentage | 90 | % | |
Activity Data: | Processing Orders | Resolving Queries | Processing Credit Reviews |
Minutes per unit of the activity | 21 | 27 | 53 |
Cost Object Data: | Customer G | All Customers | |
Number of orders processed | 36 | 49,320 | |
Number of queries resolved | 20 | 23,620 | |
Number of credit reviews processed | 4 | 2,260 | |
b. Prepare a time-driven activity-based costing Capacity Analysis report for the Customer Service Department that determines the impact on expenses of matching capacity with demand.
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