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Assume SAFE company is conducting a time-driven activity-based costing study in its Purchasing Department. To aid the study, SAFE company gathered the following data regarding

Assume SAFE company is conducting a time-driven activity-based costing study in its Purchasing Department. To aid the study, SAFE company gathered the following data regarding resources in its Purchasing Department and for 3 of its many jobs:

Number of employees 11
Average annual salary per employee $ 30,000
Weeks of employment per year 52
Hours worked per week 40
Practical capacity percentage 80%

Requisition Processing Bid Evaluation Inspection
Minutes per unit of the activity 30 15 45

Job A Job B Job C
Number of requisitions processed 9 5 6
Number of bid evaluations 4 3 4
Number of inspections 6 2 8

Given this data, what is the practice capacity of the resource supplied (in minutes)?

1,098,240

1,242,960

1,208,240

1,132,960

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