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	7
Average salary per employee	$ 56,000
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	5	4	6	115
Number of engineering change orders	7	4	4	185
Number of products tested	7	3	5	95

Required:

1. Using the customer cost analysis as demonstrated in Exhibit 7A-2, 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.

2. Using the capacity analysis as demonstrated in Exhibit 7A-3, 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.

3. Assume that Athens is considering expanding its business such that the estimated number of new products designed would increase to 185, the number of engineering change orders would jump to 255, and the number of products tested would rise to 175. 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.

Complete this question by entering your answers in the tabs below. Required 1 Required 2 1. Compute the following: a. The cost per hour of the resource supplied in the Engineering Department. (Round your answer to two decimal places.) b. The time-driven activity rate per hour for each of Athens' three activities. (Do not round intermediate calculations.) c. The total engineering costs consumed by Customer A, Customer B, and Customer C. (Do not round intermediate calculations.) (For all requirements, round your answers to 2 decimal places.) Required 3 a. Cost per hour of the resource supplied b. Time-driven activity rate: New Product Design Engineering Change Orders Product Testing Total engineering labor costs assigned to: Customer A Customer B Customer C Show less A Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 2. Compute the following: a. The used capacity in hours. b. The unused capacity in hours. c. The unused capacity in number of employees. (Round your answer to 2 decimal places.) d. 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 amounts should be indicated by a minus sign.) a. Engineering hours used to meet demand b. Unused capacity in hours c. Unused capacity in number of employees d. Impact on expenses of matching capacity with demand Required 1 Required 3 > Show less Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 3. Assume that Athens is considering expanding its business such that the estimated number of new products designed would increase to 185, the number of engineering change orders would jump to 255, and the number of products tested would rise to 175. Using these revised figures, calculate the following: a. The used capacity in hours. b. The unused capacity in hours. (Negative amounts should be indicated by a minus sign.) c. The unused capacity in number of employees. (Round your answer to 2 decimal places and Negative amounts should be indicated by a minus sign.) d. The impact on expenses of matching capacity with demand. (Round down your potential adjustment in the number of employees to a whole number.) a. The used capacity in hours b. The unused capacity in hours c. Unused capacity in number of employees d. Impact on expenses of matching capacity with demand Required 2 Required 3 Show less