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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 29
Average salary per employee $ 31,000
Weeks of employment per year 52
Hours worked per week 40
Practical capacity percentage 80 %
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 245 145 95 335,000
Number of boxes packaged 39 19 21 34,400
Number of deliveries loaded 6 2 10 12,700

Required:

1. Using the customer cost analysis as demonstrated in Exhibit 5A-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 5A-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.

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 5A-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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