I need help with solving this practice problem **Transcription for Educational Website:****Employee and Capacity Information:**- **Number of employees:** 9- **Average salary per employee:** $28,000- **Weeks of employment per year:** 52- **Hours worked per week:** 40- **Practical capacity percentage:** 85%**Activity Minutes per Unit:**- **Requisition Processing:** 15- **Bid Evaluation:** 45- **Inspection:** 30**Job Activity Breakdown:**| Activity | Job X | Job Y | Job Z ||----------|-------|-------|-------|| Number of requisitions processed | 10 | 8 | 6 || Number of bid evaluations | 2 | 1 | 3 || Number of inspections | 5 | 1 | 5 |**Estimated Activity Demands for All Jobs:**| Activity | Requisition Processing | Bid Evaluation | Inspection ||----------|------------------------|---------------|------------|| Activity demands | 7,100 | 8,560 | 10,500 |**Saratoga Company Scenario Analysis:**Assume Saratoga Company wants to explore the impact of estimated activity demands for all jobs in the next period using time-driven activity-based costing. The analysis will explore the effects on job costs and staffing levels within the Purchasing Department.**Required Tasks:**1. Determine if the revised activity demands affect total Purchasing Department labor costs for Jobs X, Y, and Z.2. Calculate Saratoga's unused capacity in minutes based on revised activity demands.3. Express Saratoga's unused capacity in hours.4. Determine Saratoga's unused capacity in terms of the number of employees (rounded to 2 decimal places).5. Assess the impact on expenses of matching capacity with demand and adjust the number of employees accordingly. (Negative amounts should be indicated by a minus sign.)**Response Table:**| Requirement | Description ||-------------|-------------|| 1 | Revised activity demands' effect on Purchasing Department labor costs for jobs X, Y, and Z || 2 | Unused capacity in minutes || 3 | Unused capacity in hours || 4 | Unused capacity in number of employees || 5 | Impact on expenses of matching capacity with demand | **Saratoga Company Case Study: Time-Driven Activity-Based Costing**Saratoga Company manufactures jobs to customer specifications. The company is conducting a time-driven activity-based costing study 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:### Company Data:- **Number of employees:** 9- **Average salary per employee:** $28,000- **Weeks of employment per year:** 52- **Hours worked per week:** 40- **Practical capacity percentage:** 85%### Activity Breakdown:**Minutes per unit of the activity:**- **Requisition Processing:** 15 minutes- **Bid Evaluation:** 45 minutes- **Inspection:** 30 minutes### Job Data:- **Job X** - Number of requisitions processed: 10 - Number of bid evaluations: 2 - Number of inspections: 5- **Job Y** - Number of requisitions processed: 7 - Number of bid evaluations: 1 - Number of inspections: 1- **Job Z** - Number of requisitions processed: 6 - Number of bid evaluations: 3 - Number of inspections: 5### "What If" Scenario:Assume Saratoga Company would like to analyze how changes in estimated activity demands affect job costs and staffing levels within the Purchasing Department.**Estimated Activity Demands for All Jobs - Next Period:**- **Requisition Processing:** 7,100 minutes- **Bid Evaluation:** 8,650 minutes- **Inspection:** 10,500 minutes### Required Analysis:1. **Total Purchasing Department Labor Costs Assignment:** - Evaluate how the revised activity demands will affect labor costs for Job X, Job Y, and Job Z.2. **Utilization of Capacity in Minutes:** - Calculate Saratoga's used capacity based on revised demands.3. **Unused Capacity in Minutes:** - Determine any unused capacity.4. **Expected Capacity in Number of Employees:** - Calculate the practical capacity in terms of the number of employees needed. (Round your answer to 2 decimal places.)5. **Adjusted Number of Employees:** - Assess potential adjustments required in staffing to meet capacity changes. Indicate reduction with a minus sign

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.)

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q