Hel Athens Company is conducting a time-driven activity-based costing study In its Engineering Department. To ald the study, the company provided the following data regarding its Engineering Department and the customers served by the department: Number of employees Average salary per employee Weeka of employment per year Hours worked per week Practical capacity pereentage $62,000 52 40 New Product Design 40 Engineering Change Orders Product Testing Hours per unit of the activity 20 CustomerA Number of new producta designed Number of engineering change ordera Number of products tested CustomerB 3. Customer C 5. All Custoners 130 200 10 6. 110 Required: 1. Using the customer cost analysis as demonstrated in Exhibit 7A-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. 2. Using the capacity analysis as demonstrated in Exhibit 7A-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. Saved Help 3. Assume that Athens is considering expanding Its business such that the estimated number of new products designed would Increase to 200, the number of engineering change orders would jump to 270, and the number of products tested would rise to 190. 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 Required 3 3. Assume that Athens is considering expanding its business such that the estimated number of new products designed would increase to 200, the number of engineering change orders would jump to 270, and the number of products tested would rise to 190. 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.) Show less A 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 d. The Impact on expenses of matchlng capacity with demand. Complete this question by entering your answers In the tabs below. Required 1 Required 2 Required 3 2. Using the capacity analysis as demonstrated In Exhibit 7A-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. (Round your answer to 2 decimal places.) d. The impact on ekpenses 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.) Show less A 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 Ga UI matching capacity with demand. Complete this question by entering your answers In the tabs below. Required 1 Required 2 Required 3 1. Using the customer cost analysis as demonstrated In Exhibit 7A-2 in your textbook, 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.) Show less A 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
