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Saratoga Company manufactures jobs to customer specifications. The company is conducting a time-driven activity-based costing study in its Purchasing Department to better understand how Purchasing

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Saratoga Company manufactures jobs to customer specifications. The company is conducting a time-driven activity-based costing study in its Purchasing Department to better understand how Purchasing Department labor costs are consumed by individual jobs. To aid the study, the company provided the following data regarding its Purchasing Department and three of its many jobs Number of employees Average salary per employee Weeks of employment per year Hours worked per week Practical capacity percentage 25 $20,500 52 40 858 Requisition 15 Job X Bid Processing Evaluation Inspection 45 Minutes per unit of the activity 30 Job Y Job Z 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? Bid Processing Evaluation Inspection 22,900 Requisition Activity demands for all jobs 20,600 27,000

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