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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

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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 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 25 $35,000 52 40 80% Line-Item Picking 5 Packaging 15 Loading Deliveries 30 Minutes per unit of the activity Number of line items picked Number of boxes packaged Number of deliveries loaded Customer L 225 35 6 Customer M 125 15 2 Customer N 75 17 10 All Customers 275,000 28,000 11,500 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

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