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:

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.)