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Number of employees Average salary per employee Weeks of employment per year Hours worked per week Practical capacity percentage 16 $ 25,000 52 40 85%
Number of employees Average salary per employee Weeks of employment per year Hours worked per week Practical capacity percentage 16 $ 25,000 52 40 85% Minutes per unit of the activity Requisition Processing 15 Bid Evaluation 45 Inspection 30 Job x Job Y Job 2 Number of requisitions processed Number of bid evaluations Number of inspections 10 7 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 all jobs Requisition Processing 10,700 Bid Evaluation 12.550 Inspection 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.)
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