Athens Company is conducting a time-driven activity-based costing study in its Engineering Department. To aid the study, the company provided the following data regarding its Engineering Department and the customers served by the department:

Number of employees		9
Average salary per employee	$	74,000
Weeks of employment per year		52
Hours worked per week		40
Practical capacity percentage		85	%
	New Product Design			Engineering Change Orders	Product Testing
Hours per unit of the activity		40		20	8
	Customer A			Customer B	Customer C	All Customers
Number of new products designed		2		1	3	160
Number of engineering change orders		6		3	3	230
Number of products tested		11		7	9	140

Required:

1. Using the customer cost analysis as demonstrated in Exhibit 5A-2 in your textbook, compute the following:

a. The cost per hour of the resource supplied in the Engineering Department.

b. The time-driven activity rate per hour for each of Athens' three activities.

c. The total engineering costs consumed by Customer A, Customer B, and Customer C.

a.	Cost Per hour of the resource supplied
b.	Time driven activity rate:
	New product design
	Engineering Change Orders
	Product Testing
c.	Total Engineering labor costs assigned to:
	Customer A
	Customer B
	Customer C

2. Using the capacity analysis as demonstrated in Exhibit 5A-3 in your textbook, compute the following:

a. The used capacity in hours.

b. The unused capacity in hours.

c. The unused capacity in number of employees.

d. The impact on expenses of matching capacity with demand.

a	Engineering hours to meet demand
b	Unused capacity in hours
c	unused capacity in number of employees
d	The impact on expenses of matching capacity with demand.

3. Assume that Athens is considering expanding its business such that the estimated number of new products designed would increase to 230, the number of engineering change orders would jump to 300, and the number of products tested would rise to 220. Using these revised figures, calculate the following:

a. The used capacity in hours.

b. The unused capacity in hours.

c. The unused capacity in number of employees.

d. The impact on expenses of matching capacity with demand.

a The used capacity in hours
b The unused capacity in hours
c The unused capacity in number of employees
d The impact on expenses of matching capacity with demand.