Assume a company is conducting a time-driven activity-based costing study in its Purchasing Department. To aid the study, the company provided the following data regarding its Purchasing Department and three of its many jobs: Number of employees 14 Average annual salary per employee $ 39,312 Weeks of employment per year 52 Hours worked per week 40 Practical capacity percentage 90% Requisition Processing Bid Evaluation Inspection Minutes per unit of the activity 30 15 45
Assume a company is conducting a time-driven activity-based costing study in its Purchasing Department. To aid the study, the company provided the following data regarding its Purchasing Department and three of its many jobs: Number of employees 14 Average annual salary per employee $ 39,312 Weeks of employment per year 52 Hours worked per week 40 Practical capacity percentage 90% Requisition Processing Bid Evaluation Inspection Minutes per unit of the activity 30 15 45
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter12: Activity-based Management
Section: Chapter Questions
Problem 8E: Thayne Company has 30 clerks that work in its Accounts Payable Department. A study revealed the...
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Assume a company is conducting a time-driven activity-based costing study in its Purchasing Department. To aid the study, the company provided the following data regarding its Purchasing Department and three of its many jobs:
Number of employees | 14 |
---|---|
Average annual salary per employee | $ 39,312 |
Weeks of employment per year | 52 |
Hours worked per week | 40 |
Practical capacity percentage | 90% |
Requisition Processing | Bid Evaluation | Inspection | |
---|---|---|---|
Minutes per unit of the activity | 30 | 15 | 45 |
Job A | Job B | Job C | |
---|---|---|---|
Number of requisitions processed | 9 | 5 | 6 |
Number of bid evaluations | 8 | 3 | 4 |
Number of inspections | 6 | 2 | 8 |
How much cost would be assigned from the Bid Evaluation activity to Job A?
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