Question
Schlaefer Corporation is conducting a time-driven activity-based costing study in its Tech Support Department. The company has provided the following data to aid in that
Schlaefer Corporation is conducting a time-driven activity-based costing study in its Tech Support Department. The company has provided the following data to aid in that study: Schlaefer Corporation Tech Support Department Data Inputs Resource Data: Number of employees 16 Average salary per employee $ 46,440 Weeks of employment per year 50 Minutes available per week (40 hours 60 minutes) 2,400 Practical capacity percentage 90 % Activity Data: Routing Calls Resolving Problems Preparing Change Orders Minutes per unit of the activity 16 26 32 Cost Object Data: All Customers Number of calls routed 43,740 Number of problems resolved 21,130 Number of change orders prepared 2,220 On the Capacity Analysis report in time-driven activity-based costing, the unused capacity in minutes would be closest to: 635,870 minutes 407,740 minutes 864,000 minutes 1,320,260 minutes
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