Question

Stahl Company is conducting a time-driven activity based costing study In Its Shipping Department. To old the study, the company provided the following data regarding Its Shipping Department and the customers served by the department: $31,000 Number of employees Average salary per employee Weeks of employment per year Hours worked per week Practical capacity percentage 808 Line-Item Picking Loading Deliveries Packaging Minutes per unit of the activity Customer L Customer X Customer 95 21 Number of line items picked Number of boxes packaged Number of deliveries loaded All Customers 335,000 34,400 12,700 Required: 1. Using the customer cost analysis as demonstrated In Exhibit 7A-2 in your textbook, compute the following: a. The cost per minute of the resource supplied in the Shipping Department. b. The time-driven activity rate for each of Stahl's three activities. c.The total labor costs consumed by Customer L, Customer M, and Customer N. 2. Using the capacity analysis as demonstrated in Exhibit 7A-3 in your textbook, compute the following: a. The used capacity in minutes. b. The unused capacity in minutes. c. The unused capacity in number of employees. d. The impact on expenses of matching capacity with demand. Complete this question by entering your answers in the tabs below.

Answer 1

Stahl Company is conducting a time-driven activity based costing study In Its Shipping Department. To old the study, the comp Complete this question by entering your answers in the tabs below. Required 1 Required 2 1. Using the customer cost analysis Complete this question by entering your answers in the tabs below.
Question :- 4 - Part :-1 a Cost, regr minute of the resources Supplied $0,20 Time - doriven activity Date Line. item Packaging Packaging Loading deliveries Total shipping labor cosł assigned to: Customer L $ 737 Customer M $ 477 Customer N $ 383 Part: -2. 3652000 La Customer Service mincetes used to meet degimo b. 485720 Unused capacity in minutes unused capacity in number of employees 5 demand Impact on expensses of matching capacily with pop (105000) d.

Parts-1A Customer Service department: Number of employees ca) Average Solazy Deer employee (6) Total cost of resources Supplied (@x(b) 21000 $819000 Paractical capacity. Peor employee Cin minutesla X.52*40*85/ 106086 Number of employees (b) Poractical Capacity of BrESOUBT ces supplied Cin minutes)) x(b) 4137120 39 Cost per minute of the resources Supplied (819000/41371200.20 Part :-1:-B Line- item Packaging Packaging Loading deliveries 5 15 30 Minules per unit of the activity Cost per minute of the resunces Supplied. (b) Time-doriven activity gate 0.20 0,20 0.20 C@xtb $ 1

Customer Customer 195 145 1 195 49. 29 Paart:-1 :- customer L Number of Line-items 295 packed (a) Time-driven activity Tate (6) 1 Line-item Packaging Costs assigned ca) x(6) 295 Number of boxes Packed Time - doriven activity rate (6) Packaging costs assigned (а) xtЬ) Number of deliveries - loaded Time-driven activity 16 rate (6) Looding deliveries costs assigned (a) (b) Total customer Service $737 costs assigned (line item packaging cost packaging cast loading deliveries Cost) 87 136 12 $477

parkoore loading deliveries 15 760 50000 Part:-2:A Line-item Packaging Customer demand foreach 485000 activity cal Customer Service minutes Brequired for Ginit of each ! activity (6) customer Service minuted used to meet demand ca XC6) 2425000 Part:-&B 15 30 756000 471600 3652000 14137120 Total Customer Service mincetes available 70 meet demand ca) Customer Service minutes used to meet - demand (b) unused capacity in minutes ca)-(6) 365-2000 485126 106080 Part: 26 unused capacity in minutes (a) 485126 Parti Practical capacity per employee Cin minutes (6) unused capacity in number of employees caycb) 5 Part 20 Potential adjustment in number of employees C) 5 Average salary peor employee (6) 21000 impact on expenses of matching capacity with $.C1056oo). demand ca ² (b)