Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sayed Help 7 Exercise 7A-1 Time-Driven Activity-Based Costing (LO 7-6) Saratoga Company manufactures jobs to customer specifications. The company is conducting a time-driven activity-based costing

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Sayed Help 7 Exercise 7A-1 Time-Driven Activity-Based Costing (LO 7-6) 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: DOR Number of employees Average salary per employee Weeks of employment per year Hours worked per week Practical capacity percentage 20 $ 25,000 52 40 85$ Requisition Bid Processing Evaluation 15 45 Fint Minutes per unit of the activity Inspection 30 Tences Job X 8 Number of requisitions processed Number of bid evaluations Number of inspections Job Y 5 3 Job z 4 7 Required: 1. Calculate the cost per minute of the resource supplied in the Purchasing Department 2. Calculate the time-driven activity rate for each of Saratoga's three activities. 3. Calculate the total purchasing labor costs assigned to Job X, Job Y, and Job Z. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the total purchasing labor costs assigned to Job X, Job Y, and Job Z. (Round your intermediate calculations and final 4. Minutes per unit of the activity Requisition Bid Processing Evaluation 15 45 Inspection 30 Job X 8 Job Y 5 moints Number of requisitions processed Number of bid evaluations Number of inspections Job z 4 5 7 7 eBook Required: 1. Calculate the cost per minute of the resource supplied in the Purchasing Department. 2. Calculate the time-driven activity rate for each of Saratoga's three activities. 3. Calculate the total purchasing labor costs assigned to Job X, Job Y, and Job Z. Print Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Required 3 Calculate the cost per minute of the resource supplied in the Purchasing Department. (Round your final answer to 2 places.) Cost per minute of the resource supplied Required 2 > Minutes per unit of the activity Requisition Bid Processing Evaluation 15 45 Inspection 30 Number of requisitions processed Number of bid evaluations Number of inspections Job x 8 4 7 Job Y 5 3 3 Job z 4 5 7 Required: 1. Calculate the cost per minute of the resource supplied in the Purchasing Department. 2. Calculate the time-driven activity rate for each of Saratoga's three activities. 3. Calculate the total purchasing labor costs assigned to Job X, Job Y, and Job Z. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the time-driven activity rate for each of Saratoga's three activities. (Round your intermediate calculations and final answers to 2 decimal places.) Requisition Processing Bid Evaluation Inspection Time-driven activity rate

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions