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Assume a company is conducting a time-driven activity-based costing study in its Purchasing Department. To aid the study, the company provided the following da
Assume a company is conducting a time-driven activity-based costing study in its Purchasing Department. To aid the study, the company provided the following da regarding its Purchasing Department, the activity demands of three of its many jobs, and the activity demands of all jobs: Number of employees Average annual salary per employee Weeks of employment per year 14 $ 39,312 52 Hours worked per week Practical capacity percentage 40 90% Requisition Processing Bid Evaluation Inspection Minutes per unit of the activity 20 15 45 Job A Job B Job C All Jobs Number of requisitions processed Number of bid evaluations Number of inspections What is the used capacity in minutes? 9 5 6 11,000 4 3 4 10,000 6 2 8 15,000 Multiple Choice 1,345,000 1,245,000 1,045,000 1,145,000
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