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		25
Average salary per employee	$	35,000
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		225		125	75	275,000
Number of boxes packaged		35		15	17	28,000
Number of deliveries loaded		6		2	10	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 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 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.