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Athens Company is conducting a time-driven activity-based costing study in its Engineering Department. To aid the study, the company provided the following data regarding its

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Athens Company is conducting a time-driven activity-based costing study in its Engineering Department. To aid the study, the company provided the following data regarding its Engineering Department and the customers served by the department: $76.000 Nunber of employees Average salary per employee Veeks of employment per year Hours worked per week Practical capacity percentage 40 85% New Product Design Engineering Change Orders 20 - Product Testing 3 Hours per unit of the activity Customer Customer B Customer C A11 Customers 165 Number of new products designed unber of engineering change orders Number of products tested 7 235 145 Required: 1. Using the customer cost analysis as demonstrated in Exhibit 7A-2 in your textbook, compute the following: a. The cost per hour of the resource supplied in the Engineering Department. b. The time-driven activity rate per hour for each of Athens' three activities. c. The total engineering costs consumed by Customer A Customer B. and Customer C. 2. Using the capacity analysis as demonstrated in Exhibit 7A-3 in your textbook, compute the following: a. The used capacity in hours. b. The unused capacity in hours. c. The unused capacity in number of employees. d. The impact on expenses of matching capacity with demand. 3. Assume that Athens is considering expanding its business such that the estimated number of new products designed would increase to 235, the number of engineering change orders would jump to 305, and the number of products tested would rise to 225 Using these revised figures, calculate the following: a. The used capacity in hours. b. The unused capacity in hours. Activity Based Costing i Saved 3. Assume that Athens is considering expanding its business such that the estimated number of new products designed would increase to 235, the number of engineering change orders would jump to 305, and the number of products tested would rise to 225. Using these revised figures, calculate the following: a. The used capacity in hours. b. The unused capacity in hours. C. The unused capacity in number of employees. 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 Required 3 1. Using the customer cost analysis as demonstrated in Exhibit 7A-2 in your textbook, compute the following: a. The cost per hour of the resource supplied in the Engineering Department. (Round your answer to two decimal places.) b. The time-driven activity rate per hour for each of Athens' three activities. (Do not round intermediate calculations.) c. The total engineering costs consumed by Customer A, Customer B, and Customer C. (Do not round intermediate calculations.) (For all requirements, round your answers to 2 decimal places.) Show less a. Cost per hour of the resource supplied b. Time-driven activity rate New Product Design Engineering Change Orders Product Testing c. Total engineering labor costs assigned to Customer A Customer B Customer C

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