Question

Weisgarber Corporation is conducting a time-driven activity-based costing study in its Customer Service Department. The company has provided the following data to aid in that study: Weisgarber Corporation Customer Service Department Data Inputs Resource Data: Number of employees Average salary per employee Weeks of employment per year Minutes available per week (45 hours x 60 minutes) Practical capacity percentage 23 37,560 60 2,700 (expression error)8 Processing Credit Reviews 52 Processing Resolving Activity Data: Minutes per unit of the activity Orders 20 Queries 26 Cost Object Data: Number of orders processed Number of queries resolved Number of credit reviews processed All Customers 49,340 23,640 2,270 Customer G 35 19 Requirecd a. Prepare a time-driven activity-based costing Customer Cost Analysis report that determines the total Customer Service Department cost assigned to Customer G b. Prepare a time-driven activity-based costing Capacity Analysis report for the Customer Service Department that determines the impact on expenses of matching capacity with demand

Expression error should be 80%

Answer 1

	Weisgarber Corporation
	Customer Service Department
	Customer Cost Analysis
Step 1 Calculate the cost per unit of the resource supplied
Number of employees	23.00
Average salary per employee	37,560.00
Total cost of resources supplied	863,880.00
Practical capacity per employee	2,160.00
Number of employees	23.00
Practical capacity of resources supplied	2,980,800.00
Cost per minute of resource supplied	0.29

Step 2 Calculate the time-driven activity rate
	Processing Orders	Resolving Queries	Processing credit reviews
Minutes per unit of activity	20	26	52
Cost per minute of the resource supplied	0.29	0.29	0.29
Time Driven Activity rate	5.8	7.54	15.08

Step 3 Assign costs to costs object
	Total cost Allocated	Allocated towards G
Number of orders processed	49340	35
Time-driven Acticity Rate	5.8	5.8
Processing orders Costs assigned (A)	286172	203
Number of queries resolved	23640	19
Time-driven Acticity Rate	7.54	7.54
Processing orders Costs assigned (B)	178245.6	143.26
Number of credit reviews processed	2270	1
Time-driven Acticity Rate	15.08	15.08
Processing orders Costs assigned ©	34231.6	15.08
Total customer cost assigned to G (A+B+C)	498649.2	361.34

	Weisgarber Corporation
	Customer Service Department
	Costing capacity Analysis
	Processing Orders	Resolving Queries	Processing credit reviews
Step 1 Calculate the used capacity in minutes
Customer Demand for each activity	49340	23640	2270
Minutes required per unit of each activity	20	26	52
Minutes used to meet demand	986800	614640	118040
Step 2 Calculate the unused capacity in demand
Total minutes available to meet needs	2980800
Total minutes used to meet demand	1719480
unused capacity in minutes	1261320
Step 3 Calculate the unused capacity in number of employee
Unused capacity in minutes	1261320
Practical capacity per employee (in minutes)	129600
Unused capacity in number of employees	9.73
Step 4 Calculate the financial impact of matching capacity with demand
Potential Adjustment in number of employees	10	( Round Off)
Average salary per employee	37560
Impact on expense on matching capacity with demand	375600