Saratoga Company manufactures jobs to customer specifications. 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. To aid 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 Weeks of employment per year Hours worked per week Practical capacity percentage Minutes per unit of the activity Number of requisitions processed Number of bid evaluations Number of inspections 15 $ 31,000 52 40 85% Required 1 Required 2 Required 3 Requisition Processing 15 Job X 9 3 6 Cost per minute of the resource supplied Bid Evaluation 45 Job Y 6 2 2 Complete this question by entering your answers in the tabs below. Required: 1. Calculate the cost per minute of the resource supplied in the Purchasing Department. 2. Calculate the time-driven activity rate for each of Saratoga's three activities. 3. Calculate the total purchasing labor costs assigned to Job X, Job Y, and Job Z. Inspection 30 Job Z 5 4 6 Calculate the cost per minute of the resource supplied in the Purchasing Department. (Round your final answer to 2 decimal places.)
Saratoga Company manufactures jobs to customer specifications. 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. To aid 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 Weeks of employment per year Hours worked per week Practical capacity percentage Minutes per unit of the activity Number of requisitions processed Number of bid evaluations Number of inspections 15 $ 31,000 52 40 85% Required 1 Required 2 Required 3 Requisition Processing 15 Job X 9 3 6 Cost per minute of the resource supplied Bid Evaluation 45 Job Y 6 2 2 Complete this question by entering your answers in the tabs below. Required: 1. Calculate the cost per minute of the resource supplied in the Purchasing Department. 2. Calculate the time-driven activity rate for each of Saratoga's three activities. 3. Calculate the total purchasing labor costs assigned to Job X, Job Y, and Job Z. Inspection 30 Job Z 5 4 6 Calculate the cost per minute of the resource supplied in the Purchasing Department. (Round your final answer to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Saratoga Company manufactures jobs to customer specifications. 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. To
aid 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
Weeks of employment per year
Hours worked per week
Practical capacity percentage
Minutes per unit of the activity
Number of requisitions processed
Number of bid evaluations
Number of inspections
15
$ 31,000
Required 1 Required 2 Required 3
52
40
85%
Requisition
Processing
15
Cost per minute of the resource supplied
Job X
9
3
6
Bid
Evaluation
45
Job Y
6
2
2
Complete this question by entering your answers in the tabs below.
Required:
1. Calculate the cost per minute of the resource supplied in the Purchasing Department.
2. Calculate the time-driven activity rate for each of Saratoga's three activities.
3. Calculate the total purchasing labor costs assigned to Job X, Job Y, and Job Z.
Inspection
30
Job Z
5
4
6
Calculate the cost per minute of the resource supplied in the Purchasing Department. (Round your final answer to 2 decimal
places.)
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