Saratoga company manufactures jobs to customers specifications . The company is conducting a time driven activity based costing study in its purchasing dept to better understand how purchasing dept labor costs are consumed by individual jobs. To aid the study the company provided the following data regarding its purchasing dept and three of its many jobs

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 17 24,500 52 40 85% Requisition Processing 15 Bid Evaluation 45 Inspection 30 Minutes per unit of the activity Job Y 8 Number of requisitions processed Number of bid evaluations Number of inspections Job x 11 5 8 Job z 7 6 8 4 4 Now assume that Saratoga Company would like to answer the following what if" question using its Nime-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 I=CC 1-..-.-.-:.. 11. - D.