M Inbox (530) MyCTC-Ozarks Technic X , MyOTC Module 4: Variable Costir x Secure

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M Inbox (530) MyCTC-Ozarks Technic X , MyOTC Module 4: Variable Costir x Secure ! https:// ect.mheducation.com/flow/connect. htmil (-7 ? 13 Saratoga Company manufectures jobs to customer specifications The company is conducting a time-driven activity-based costing study in its Purchasing Department to better under aid the study, the company provided the following data regarding its Purchasing rstand how Purchasing Department labor costs are consumed by individual jobs. To Department and three of its many jobs 2.4 points s 27,800 Weeks of employment per year Hours worked per week Requisition Bid Minutes per unit of the activity Job ? Job Y Job 2 Number of requisitions processed Nunben of bid evaluations Number of inspections Now assume that Saratoga Company would like to answer the following what if question using its time-driven activity bas system Assuming our estimated activity demands for all jobs in the next period weill be as shown below, how will this affect our job costs and our staffing levels within the Purchasing Department? 10,958 1. Will the revised activity demands affect the total Purchasing Department labor 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 costs assigned to Job X, Job Y and Job Z? 5. Based on the revised activity demands, down your potential adjustment in the number of employees to a whole number. Negative amount should be indicated by a minus sign.) calculate the impact on expenses of matching capacity with demand. (Be sure to round K Prey 13 of 13 Next O Type here to search

Explanation / Answer

No of employees 11 A Avg salary per employee 27000 B Weeks of employment pa 52 C Hours per week 40 D Practical capacity percentage 85% E Maximum Capacity (hours) 22880 F=A*C*D Practical capacity (hours) 19448 G=F*E Requisition Bid Evaluation Inspection Total Processing Activity Demand 8300 10950 11700 H Minutes Required per activity 15 45 30 I Used Capacity (mins) 124500 492750 351000 968250 J=H*I Practical capacity (mins) 1166880 K=G*60 Unused Capacity (mins) 198630 L=K-J Per employee practical capacity (mins) per annum 106080 M=C*D*E*60 Unused Capacity (no of employees)          1.87 N=L/M Impact on expenses on matching capacity with demand ($) 50556.28 O=N*B The answers to the questions should be as follows: Ans 1 No Ans 2 968250 Ans 3 198630 Ans 4 1.87 Ans 5 -50556.28

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