Saratoga Company manufactures jobs to customer specifications. 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. Toaid 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 percentageMinutes per unit of the activity10$ 27,500524085%RequisitionProcessing15Job X11Bid Evaluation Inspection.4530Job Y822Job Z74Number of requisitions processedNumber of bid evaluations3Number of inspections6In addition, assume that Saratoga Company provided the following activity data for all jobs produced during the year:1. Used capacity in minutes2. Unused capacity in minutes3. Unused capacity in number of employees4. Impact on expenses of matching capacity with demandRequisitionProcessing Bid Evaluation Inspection7,60010,30010,600Activity demands for all jobsRequired:1. Calculate Saratoga's used capacity in minutes.2. Calculate Saratoga's unused capacity in minutes.3. Calculate Saratoga's unused capacity in number of employees. (Round your answer to 2 decimal places.)4. Calculate the impact on expenses of matching capacity with demand. (Be sure to round down your potential adjustment in thenumber of employees to a whole number. Negative amounts should be indicated by a minus sign.)

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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 Bours worked per week Practical capacity percentage Minutes per unit of the activity Number of requisitions processed Number of bid evaluations Number of inspections 10 $ 27,500 52 40 85% Requisition Processing Bid Evaluation Inspection 15 45 30 Job X 11 3 Job Y 8 2 2 Job 2 7 4

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 Bours worked per week Practical capacity percentage Minutes per unit of the activity Number of requisitions processed Number of bid evaluations Number of inspections 10 $ 27,500 52 40 85% Requisition Processing Bid Evaluation Inspection 15 45 30 Job X 11 3 Job Y 8 2 2 Job 2 7 4

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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