I need help with solving this practice problem Number of employeesAverage salary per employeeWeeks of employment per yearHours worked per weekPractical capacity percentage9$ 28,000524085%RequisitionProcessingBidEvaluationInspectionMinutes per unit of the activity154530Job xJob YJob zNumber of requisitions processedNumber of bid evaluationsNumber of inspections191Now assume that Saratoga Company would like to answer the following "what If" question using Its time-driven activity-based costingsystem: Assuming our estimated activity demands for all Jobs In the next perlod wll be as shown below, how will this affect our Jobcosts and our staffing levels within the Purchasing Department?RequisitionProcessingBidEvaluationInspectionActivity demands for all jobs7,1008,65010,500Requlred:1. Will the revlised activity demands affect the total Purchasing Department labor costs assigned to Job X, Job Y, and Job Z?2 Using the revised activity demands, calculate Saratoga's used capacity in minutes.3. Using the revised activity demands, calculate Saratoga's unused capacity In minutes.4. Using the revised activity demands, calculate Saratoga's unused capacity In number of employees. (Round your answer to 2decimal places.)5. Based on the revised activity demands, calculate the Impact on expenses of matching capacity with demand. (Be sure to rounddown your potentlal adjustment In the number of employees to a whole number. Negatlve amount should be Indicated by a minussign.)Revised activity demands affect total Purchasing Department labor costs assigned to Jobs X. Y and Z7Used capacity in minutes3.Unused ospacity in minutes4.Unused capacity in number of employeesImpact on expenses of matching capacity with demand Saratoga Company manufactures Jobs to customer spectficatlons. The company Is conducting a time-driven activity-based costingstudy In Its Purchasing Department to better understand how PurchasIng Department labor costs are consumed by Individual Jobs. Toald the study, the company provided the following data regarding Its Purchasing Department and three of Its many jobs:Number of employeesAverage salary per employeeWeeks of employment per yearHours 'worked per weekPractical capacity percentage$ 28,000524085%BidRequisitionProcessingEvaluationInspectionMinutes per unit of the activity154530Job XJob YJob z106.Number of requisitions processedNumber of bid evaluationsNumber of inspections2.1.Now assume that Saratoga Company would like to answer the following "what If" questlon using Its time-driven activity-based costingsystem. Assuming our estlmated activity demands for all Jobs In the next perlod will be as shown below, how will this affect our jobcosts and our staffing levels within the Purchasing Department?BidRequisitionProcessingInspection10,500EvaluationActivity demands for all jobs7,1008,650Requlred:1. WIll the revised activity demands affect the total Purchasing Department labor costs assigned to Job X, Job Y, and Job Z?2 Using the revised activity demands, calculate Saratoga's used capacity In minutes.3. Using the revised activity demands, calculate Saratoga's unused capacity in minutes.4. Using the revised activity demands, calculate Saratoga's unused capacity In number of employees. (Round your answer to 2decimal places.)5. Based on the revised activity demands, calculate the Impact on expenses of matching capacity with demand. (Be sure to rounddown your potentlal adjustment In the number of employees to a whole number, Negatlve amount should be Indlcated by a mlnussign.)

It gives a clear idea of actual production and other costs on the basis of the individual tasks…

Saratoga Company manufactures Jobs to customer spectfications. The company Is conducting a time-driven activity-based costing study In Its Purchasing Department to better understand how Purchasing Department labor costs are consumed by Individual jobs. T ald the study, the company provided the followIng data regarding Its Purchasing Department and three of Its many jobs: Number of employees Average salary per employee A Weeks of employment per year Hours 'worked per week Practical capacity percentage $ 28,000 52 40 85% Bid Requisition Processing Evaluation Inspection Minutes per unit of the activity 15 45 30 Job X Job Y Job z 10 7. 6. Number of requisitions processed Number of bid evaluations Number of inspections 1 Now assume that Saratoga Company would like to answer the following "what If" question using Its time-driven activity-based costing system: Assuming our estimated activity demands for all Jobs In the next perlod will be as shown below, how wll this affect our job costs and our staffing levels within the Purchasing Department? Requisition Processing Bid Inspection 10,500 Evaluation Activity demands for all jobs 7,100 8,650 Requlred: 1. WIll the revised activity demands affect the total Purchasing Department labor costs assigned to Job X, Job Y, and Job Z? 2 Using the revised activity demands, calculate Saratoga's used capacity In minutes. 3. Using the revised activity demands, calculate Saratoga's unused capacity In minutes. 4. Using the revised activity demands, calculate Saratoga's unused capacity In number of employees. (Round your answer to 2 decimal places.) 5. Based on the revised activity demands. calculate the Impact on expenses of matching capacity with demand. (Be sure to round down your potentlal adjustment In the number of employees to a whole number. Negative amount should be Indicated by a minus sign.)

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter18: Activity-based Costing

Section: Chapter Questions

Problem 13E: Handbrain Inc. is considering a change to activity-based product costing. The company produces two...