Chayetio Corporation resells electronics to the consumer market. The company uses a time-driven activity-based costing system. Within the Delivery department of the company, there are four basic activities: order processing, picking, packaging, and shipping. The company employs twelve people who run all aspects of the operations. A consultant has provided estimates of the times associated with each of the activities: Activity Order processing Picking Packaging Shipping Time to complete 5 minutes 10 minutes 15 minutes 20 minutes Employees in the company work 44 hours per week with six weeks for vacation (out of the 52-week year). Of the 44 hours, four are reserved for team-building exercises. The costs of the departmental activities, including any allocated costs from other staff functions, are $3,444,480. During the year, the department received 24,000 orders, the department picked 21,000 orders, packed 21,500 orders, and 23,600 orders were shipped. The manager of the department is considering changing the costing system to incorporate some of the additional complexity he has observed in their activities. First, the time to package an order depends on the nature of the products being delivered. He estimates that for delicate products, the additional time to pack the product is 15 minutes. To pack products that are fragile, it takes an additional 15 minutes (compared to delicate products). The second issue that he identified is that the time for shipping depends on whether the delivery is national or international. For international deliveries, he estimates that an additional 30 minutes of time is spent to locate the most efficient shipping company (compared to national delivery shipping). Required: a) In the current costing system, what is the cost per minute for activities in the department? b) In the current costing system, what is the cost of processing, picking, packing and shipping a single order? c) How many minutes of unused capacity did the department have for the year? d) What was the cost of the unused capacity in the department? e) Consistent with the manager's proposed changes, write out the time equation for the packaging activity. f) Consistent with the manager's proposed changes, write out the time equation for the shipping activity. g) Consistent with the manager's proposed changes, what is the cost of packaging a delicate product? A fragile product? h) Consistent with the manager's proposed changes, what is the cost of preparing a product for national shipping? For international shipping? i) What recommendations might you make to the manager about efficiency within the Delivery department?