MANAGERIAL ACCOUNTING FOR MANAGERS
MANAGERIAL ACCOUNTING FOR MANAGERS
5th Edition
ISBN: 9781264196456
Author: Noreen
Publisher: MCG
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Chapter 5A, Problem 5A.2E

Time-Driven Activity-Based Costing LO5—7

Refer to the data in Exercise 5A—1. In addition, assume that Saratoga Company provided the following activity data for all jobs produced during the year:

Chapter 5A, Problem 5A.2E, Time-Driven Activity-Based Costing LO5—7 Refer to the data in Exercise 5A—1. In addition, assume

Required:

  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. (Do not round your answer to a whole number.)
  4. Calculate the impact on expenses of matching capacity with demand. (Be sure to round your potential adjustment in the number of employees to a whole number.)

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