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Chec Number of employees Average salary per employee Weeks of employment per year Hours worked per week Practical capacity percentage 10 $ 27,500 52 40

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Chec Number of employees Average salary per employee Weeks of employment per year Hours worked per week Practical capacity percentage 10 $ 27,500 52 40 85% Requisition Bid Processing Evaluation 15 45 Minutes per unit of the activity Inspection 30 Number of requisitions processed Number of bid evaluations Number of inspections Job X 11 3 6 Job Y 8 2 2 Job Z 7 4 6 Now assume that Saratoga Company would like to answer the following what if question using its time-driven activity-based cost system: Assuming our estimated activity demands for all jobs in the next period will be as shown below, how will this affect our job costs and our staffing levels within the Purchasing Department? Activity demands for all jobs Requisition Bid Processing Evaluation Inspection 7,990 10,600 11,100 Required: 1. Will the revised activity demands affect the total Purchasing Department labor costs assigned to Job X, Job Y, and Job Z? 2. Using the revised activity demands, calculate Saratoga's used capacity in minutes. 3. Using the revised activity demands, calculate Saratoga's unused capacity in minutes 4. Using the revised activity demands, calculate Saratoga's unused capacity in number of employees. (Round your answer to 2

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