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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: ts Number of employees Average salary per employee Weeks of employment per year Hours worked per week Practical capacity percentage 39 $21,000 52 40 85% Line-Item eBook Minutes per unit of the activity Picking 5 Packaging 15 eferences Customer L Number of line items picked 295 Customer M 195 Loading Deliveries 30 Customer N 145 All Customers 485,000 Number of boxes packaged Number of deliveries loaded i 49 29 31 50,400 6 10 15,700 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. Required 1 Required 2 1. 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 consuined by Customer L, Customer M, and Customer N. (For all requirements, round your intermediate calculations and final answers to 2 decimal places.) a. Cost per minute of the resource supplied b. Time-driven activity rate: C Line-item picking Packaging Loading Deliveries Total shipping labor costs assigned to: Customer L Customer M Customer N C. Required> Required 2 > Show less A
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