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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 Average salary per employee Weeks of employment per year Hours worked per week Practical capacity percentage 24 $36,500 52 40 80% Line-Item Picking Packaging Loading Deliveries Minutes per unit of the activity 15 30 Customer L 220 Customer M 120 70 Number of line items picked Number of boxes packaged Number of deliveries loaded 34 Customer N All Customers 260,000 16 26,400 10 11,200 14 Required: 1. Using the customer cost analysis as demonstrated in Exhibit 7A-2 in your textbook, compute the following: E a. The cost per minute of the resource supplied in the Shipping Department. E b. The time-driven activity rate for each of Stahl's three activities. E 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 in your textbook, compute the following: E a. The used capacity in minutes. E b. The unused capacity in minutes. E c. The unused capacity in number of employees. E 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. Using the customer cost analysis as demonstrated in Exhibit 7A-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 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 Total shipping labor costs assigned to: Customer L Customer M Customer N
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