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Hollifield Corporation is conducting a time-driven activity-based costing study in its Order Fulfillment Department. The company has provided the following data to aid in that
Hollifield Corporation is conducting a time-driven activity-based costing study in its Order Fulfillment Department. The company has provided the following data to aid in that study: Hollifield Corporation Order Fulfillment Department Data Inputs Resource Data: Number of employees Average salary per employee Weeks of employment per year Minutes available per week (40 hours x 60 minutes) Practical capacity percentage 18 $33,300 50 2,400 75% Activity Data: Minutes per unit of the activity Processing Preparing Handling Orders Deliveries Returns 20 26 48 Cost Object Data: Number of orders processed Number of deliveries prepared Number of returns handled All Customers 22,540 15,180 1,540 On the Capacity Analysis report in time-driven activity-based costing, the "impact on expenses of matching capacity with demand" would be closest to: Multiple Choice o ($199,800) o ($233,100) o ($259,222) o ($266,400) Hollifield Corporation is conducting a time-driven activity-based costing study in its Order Fulfillment Department. The company has provided the following data to aid in that study: Hollifield Corporation Order Fulfillment Department Data Inputs Resource Data: Number of employees Average salary per employee Weeks of employment per year Minutes available per week (40 hours x 60 minutes) Practical capacity percentage 18 $33,300 50 2,400 75% Activity Data: Minutes per unit of the activity Processing Preparing Handling Orders Deliveries Returns 20 26 48 Cost Object Data: Number of orders processed Number of deliveries prepared Number of returns handled All Customers 22,540 15,180 1,540 On the Capacity Analysis report in time-driven activity-based costing, the "impact on expenses of matching capacity with demand" would be closest to: Multiple Choice o ($199,800) o ($233,100) o ($259,222) o ($266,400)
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