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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 37 $23,000 52 40 85% Loading Line-Item Picking Packaging Deliveries 30 Minutes per unit of the activity 15 Customer L Customer M Customer N All Customers 455,000 47, 200 15,100 Number of line items picked Number of boxes packaged 285 185 135 47 27 29 Number of deliveries loaded 6 2. 10 Required: 1. Using the customer cost analysis 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. as demonstrated in Exhibit 7A-2 in your textbook, compute the following: 2. Using the capacity analysis as demonstrated in Exhibit 7A-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. 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 37 $23,000 52 40 85% Loading Line-Item Picking Packaging Deliveries 30 Minutes per unit of the activity 15 Customer L Customer M Customer N All Customers 455,000 47, 200 15,100 Number of line items picked Number of boxes packaged 285 185 135 47 27 29 Number of deliveries loaded 6 2. 10 Required: 1. Using the customer cost analysis 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. as demonstrated in Exhibit 7A-2 in your textbook, compute the following: 2. Using the capacity analysis as demonstrated in Exhibit 7A-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
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