Stahl Company is conducting a time-driven activity-based costing study in its Shipping Department. To aid the study, the company provided the following data regarding its Shipping Department and the customers served by the department: Number of employees Average salary per employee Weeks of employment per year Hours worked per week Practical capacity percentage 35 $25,000 52 40 85% Loading Deliveries 30 Packaging 15 Minutes per unit of the activity Line-Item Picking 5 Customer L 275 45 6 Number of line items picked Number of boxes packaged Number of deliveries loaded Customer M 175 25 2 Customer N 125 27 10 All Customers 425,000 44,000 14,500 Required: 1. Using the customer cost analysis as demonstrated in Exhibit 7A-2, compute the following: a. The cost per minute of the resource supplied in the Shipping Department. b. The time-driven activity rate for each of Stahl's three activities. c.The total labor costs consumed by Customer L, Customer M, and Customer N. 2. Using the capacity analysis as demonstrated in Exhibit 7A-3, compute the following: a. The used capacity in minutes. b. The unused capacity in minutes. c. The unused capacity in number of employees. d. The impact on expenses of matching capacity with demand. EXHIBIT 7A-3 Ridley Company: Capacity Analysis B D E 1 2 3 4 Ridley Company Customer Service Department Capacity Analysis Order Query Credit processing resolution reviews Total 200,000 4,500 8,900 10 30 40 2,000,000 135,000 356,000 2,491,000 5 Step 1: Calculate the used capacity in minutes 6 Customer demand for each activity (a) 7 Customer service minutes required per unit of each activity (b) 8 Customer service minutes used to meet demand (a) (b) 9 10 Step 2: Calculate the unused capacity in minutes 11 Total customer service minutes available to meet demand (a) 12 Total customer service minutes used to meet demand (b) 13 Unused capacity in minutes (a) - (b) 14 15 Step 3: Calculate the unused capacity in number of employees 16 Unused capacity in minutes (a) 17 Practical capacity per employee (in minutes) (b) 18 Unused capacity in number of employees (a) + (b) 2,995,200 2,491,000 504,200 504,200 99,840 5.05 19 20 Step 4: Calculate the financial impact of matching capacity with demand 21 Potential adjustment in number of employees (rounded) (a) 22 Average salary per employee (b) 23 Impact on expenses of matching capacity with demand (a) (b) 24 25 Note: Cell B21 uses the formula =if(B18>0, rounddown(-818,0), roundup(-818,0)) Exhibit 7A-2 Exhibit 7A-3 Exhibit 7A4 Exhid (5.00) $ 29,952 $(149,760) 26 > IM Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 2. Compute the following: a. The used capacity in minutes. b. The unused capacity in minutes. c. The unused capacity in number of employees. (Round your answer to 2 decimal places.) d. The impact on expenses of matching capacity with demand. (Round down your potential adjustment in the number of employees to a whole number.) Show less a. 492,800 5 b. Shipping minutes used to meet demand Unused capacity in minutes Unused capacity in number of employees Impact on expenses of matching capacity with demand C. d.