232
119) Taft Corporation is conducting a time-driven activity-based costing study in its Tech
Support Department. The company has provided the following data to aid in that study:
Taft Corporation
Tech Support Department
Data Inputs
Resource Data:
Number of employees
24
Average salary per employee
$39,780
Weeks of employment per year
50
Minutes available per week (40 hours × 60 minutes)
2,400
Practical capacity percentage
85%
Activity Data:
Routing Calls
Resolving
Problems
Preparing
Change
Orders
Minutes per unit of the activity
20
26
34
Cost Object Data:
Customer J
All Customers
Number of calls routed
26
43,090
Number of problems resolved
19
36,360
Number of change orders prepared
1
1,670
Required:
a. Prepare a time-driven activity-based costing Customer Cost Analysis report that determines
the total Tech Support Department cost assigned to Customer J.
b. Prepare a time-driven activity-based costing Capacity Analysis report for the Tech Support
Department that determines the impact on expenses of matching capacity with demand.
235
120) Sardella Corporation is conducting a time-driven activity-based costing study in its Order
Fulfillment Department. The company has provided the following data to aid in that study:
Sardella Corporation
Order Fulfillment Department
Data Inputs
Resource Data:
Number of employees
11
Average salary per employee
$37,440
Weeks of employment per year
50
Minutes available per week (40 hours × 60 minutes)
2,400
Practical capacity percentage
80%
Activity Data:
Processing
Orders
Preparing
Deliveries
Handling
Returns
Minutes per unit of the activity
12
24
38
Cost Object Data:
All Customers
Number of orders processed
34,520
Number of deliveries prepared
19,920
Number of returns handled
650
Required:
Prepare a time-driven activity-based costing Capacity Analysis report for the Order Fulfillment
Department that determines the impact on expenses of matching capacity with demand.
237
121) Monfort Corporation is conducting a time-driven activity-based costing study in its
Customer Support Department. The company has provided the following data to aid in that
study:
Monfort Corporation
Customer Support Department
Data Inputs
Resource Data:
Number of employees
15
Average salary per employee
$37,800
Weeks of employment per year
50
Minutes available per week (40 hours × 60 minutes)
2,400
Practical capacity percentage
90%
Activity Data:
Receiving
Calls
Resolving
Issues
Settling
Disputes
Minutes per unit of the activity
12
22
34
Cost Object Data:
All Customers
Number of calls received
34,490
Number of issues resolved
20,350
Number of disputes settled
550
Required:
Prepare a time-driven activity-based costing Capacity Analysis report for the Customer Support
Department that determines the impact on expenses of matching capacity with demand.
239
122) Riedell Corporation is conducting a time-driven activity-based costing study in its Tech
Support Department. The company has provided the following data to aid in that study:
Riedell Corporation
Tech Support Department
Data Inputs
Resource Data:
Number of employees
13
Average salary per employee
$
39,600
Weeks of employment per year
50
Minutes available per week (40 hours × 60 minutes)
2,400
Practical capacity percentage
75
%
–
Activity Data:
Routing Calls
Preparing
Change
Orders
Resolving
Problems
Minutes per unit of the activity
14
24
40
–
Cost Object Data:
All Customers
Number of calls routed
20,010
Number of problems resolved
12,840
Number of change orders prepared
580
–
Required:
Prepare a time-driven activity-based costing Capacity Analysis report for the Tech Support
Department that determines the impact on expenses of matching capacity with demand.
123) Mosburg 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:
Mosburg Corporation
Customer Support Department
Data Inputs
Resource Data:
Number of employees
16
Average salary per employee
$
36,900
Weeks of employment per year
50
Minutes available per week (40 hours × 60 minutes)
2,400
Practical capacity percentage
75
%
Activity Data:
Processing
Orders
Resolving
Queries
Processing
Credit
Reviews
Minutes per unit of the activity
14
26
40
Cost Object Data:
All Customers
Number of orders processed
33,790
Number of queries resolved
23,650
Number of credit reviews processed
1,500
–
Required:
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.
Weeks of employment per year (a)
Minutes available per week (40 hours × 60 minutes) (b)
Practical capacity percentage (c)
Practical capacity per employee (in minutes) (a) × (b) × (c)
Number of employees
Practical capacity of resources supplied (in minutes)
–