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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

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 30
Average salary per employee $ 30,000
Weeks of employment per year 52
Hours worked per week 40
Practical capacity percentage 85 %
Line-Item Picking Packaging Loading Deliveries
Minutes per unit of the activity 5 15 30
Customer L Customer M Customer N All Customers
Number of line items picked 250 150 100 350,000
Number of boxes packaged 40 20 22 36,000
Number of deliveries loaded 6 2 10 13,000

Required:

1. Using the customer cost analysis as demonstrated in Exhibit 7A-2 in your textbook, 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 Stahls 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 in your textbook, 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.

1. Using the customer cost analysis as demonstrated in Exhibit 7A-2 in your textbook, 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 Stahls three activities. c. The total labor costs consumed by Customer L, Customer M, and Customer N.

(For all requirements, round your intermediate calculations and final answers to 2 decimal places.)

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a. Cost per minute of the resource supplied
b. Time-driven activity rate:
Line-item picking
Packaging
Loading Deliveries
c. Total shipping labor costs assigned to:
Customer L
Customer M
Customer N
  • 2. Using the capacity analysis as demonstrated in Exhibit 7A-3 in your textbook, 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. Negative amounts should be indicated by a minus sign.)

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    a. Shipping minutes used to meet demand
    b. Unused capacity in minutes
    c. Unused capacity in number of employees
    d. Impact on expenses of matching capacity with demand

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