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Hours worked per week Practical capacity percentage 40 85% Requisition Processing 15 Bid Evaluation 45 Minutes per unit of the activity Inspection 30 Joby Job

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Hours worked per week Practical capacity percentage 40 85% Requisition Processing 15 Bid Evaluation 45 Minutes per unit of the activity Inspection 30 Joby Job 2 Job X 10 Number of requisitions processed Number of bid evaluations Number of inspections Now assume that Saratoga Company would like to answer the following what if question using its time-driven activity-based costing 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 11 Jobs Requisition Processing 10,700 Bid Evaluation Inspection 12,550 15,100 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 decimal places.) 5. Based on the revised activity demands, calculate 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 amount should be indicated by a minus sign.) Hours worked per week Practical capacity percentage 40 85% Requisition Processing 15 Bid Evaluation 45 Minutes per unit of the activity Inspection 30 Joby Job 2 Job X 10 Number of requisitions processed Number of bid evaluations Number of inspections Now assume that Saratoga Company would like to answer the following what if question using its time-driven activity-based costing 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 11 Jobs Requisition Processing 10,700 Bid Evaluation Inspection 12,550 15,100 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 decimal places.) 5. Based on the revised activity demands, calculate 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 amount should be indicated by a minus sign.)

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