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2 Athens Company is conducting a time-driven activity-based costing study in its Engineering Department. To aid the study, the company provided the following data regarding its Engineering Department and the customers served by the department: 9 $ 76,000 Number of employees Average salary per employee Weeks of employment per year Hours worked per week 52 40 Practical capacity percentage 85% New Product Design 40 Engineering Change Orders 20 Product Testing 8 Hours per unit of the activity Customer A Customer B Customer C All Customers 3 4 165 Number of new products designed Number of engineering change orders Number of products tested 7 4 235 7 5 145 Required: 1. Using the customer cost analysis as demonstrated in Exhibit 7A-2, 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 and Customer C. 2. Using the capacity analysis as demonstrated in Exhibit 7A-3, 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. 3. Assume that Athens is considering expanding its business such that the estimated number of new products designed would increase to 235, the number of engineering change orders would jump to 305, and the number of products tested would rise to 225. 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. 10 points eBook Ask Print References