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Stahl Company is conducting a time-driven activity-based costing study in its Shipping Department. To ald 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 ald 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 sos Line-Item Picking Packaging 15 Loading Deliveries 30 Minutes per unit of the activity Customer M 125 Number of line itens picked Number of boxes packaged Number of deliveries loaded Customer L 225 35 6 Customer N 75 17 10 All Customers 275,000 28,000 11,500 15 2 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. cThe total labor costs consumed by Customer L. Customer M, and Customer N 2. Using the capacity analysis as demonstrated in Exhibit 7A3, 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 consumed by Customer L, Customer M, and Customer N. (For all requirements, round your intermediate calculations and final answers to 2 decimal places.) S 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 Customer M Customer N Required 1 Required 2 > 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 d. Impact on expenses of matching capacity with demand
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