Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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 20 $ 42,080 52 40 804 Line-Item Picking 5 Loading Deliveries 30 Packaging 15 Minutes per unit of the activity Number of line items picked Number of boxes packaged Number of deliveries loaded Customer L 200 30 6 Customer M 100 10 2 Customer N All Customers 50 200,000 12 20,000 1e 10,000 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. Complete this question by entering your answers in the tabs below. 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 consumed by Customer L, Customer M, and Customer N. (For all requirements, round your intermediate calculations and final answers to 2 decimal places.) Show less 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 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. Shipping minutes used to meet demand b. Unused capacity in minutes c. Unused capacity in number of employees Impact on expenses of matching capacity with demand

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Cross-Border Mergers And Acquisitions UK Dimensions

Authors: Moshfique Uddin, Agyenim Boateng

1st Edition

0415836603, 9780415836609

More Books

Students also viewed these Accounting questions