Stahl Company IS conducting a time-driven activity-based costing study In Its Shipping Department. To ald the study, the company provided the following data regarding Its Shipping Department and the customers served by the department: Number of employees Average salary per employee Weeks of employment per year Hours worked per week Practical capacity percentage 25 $35,000 52 40 80% Line-Item Loading Picking Packaging Deliveries Minutes per unit of the activity 15 30 Customer L Customer M Customer N All Customers Number of line items picked Number of boxes packaged Number of deliveries loaded 225 125 75 275, 000 35 15 17 28,e00 2 10 11, 5ee Requlred: 1. Using the customer cost analysis as demonstrated in Exhibit 7A-2. 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 Exnibit A-3. compute the followng: 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.
Stahl Company IS conducting a time-driven activity-based costing study In Its Shipping Department. To ald the study, the company provided the following data regarding Its Shipping Department and the customers served by the department: Number of employees Average salary per employee Weeks of employment per year Hours worked per week Practical capacity percentage 25 $35,000 52 40 80% Line-Item Loading Picking Packaging Deliveries Minutes per unit of the activity 15 30 Customer L Customer M Customer N All Customers Number of line items picked Number of boxes packaged Number of deliveries loaded 225 125 75 275, 000 35 15 17 28,e00 2 10 11, 5ee Requlred: 1. Using the customer cost analysis as demonstrated in Exhibit 7A-2. 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 Exnibit A-3. compute the followng: 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.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 4BE: Activity-based costing: selling and administrative expenses Jungle Junior Company manufactures and...
Related questions
Question
I need help with this this practice problem please thank you.
Transcribed Image Text:Stahl Company is conducting a time-driven activity-based costing study In Its Shipping Department. To ald the study, the company
provided the following data regarding Its Shipplng Department and the customers served by the department:
Number of employees
Average salary per employee
Weeks of employment per year
Hours worked per week
Practical capacity percentage
25
$35,000
52
40
80%
Line-Item
Loading
Picking
Packaging
Deliveries
Minutes per unit of the activity
15
30
CustomerL
Customer M
Customer N
All Customers
Number of 1ine items picked
Number of boxes packaged
225
125
75
275, 000
35
15
17
28,000
Number of deliveries loaded
10
11,500
Requlred:
1. Using the customer cost analysis as demonstrated in Exhlbit 7A-2, compute the following:
a. The cost per minute of the resource supplled 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 Exnibit 7A 3. compute the followng:
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.
Required 1
Required 2
1. Compute the following:
a. The cost per minute of the rescurce supplled in the Shippin
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.
Department.
(For all reguirements. round your intermediate calculations and final ansvers to 2 decimat piaces.)
Transcribed Image Text:Requlred:
1. Using the customer cost analysls as demonstrated In ExhIbit 7A-2, compute the following:
a. The cost per minute of the resource suppled In the Shlpping Department.
b. The time-driven activity rate for each of Stahl's three activitles.
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, 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.
Required 1
Required 2
1. 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.
(For all requirements, round your intermediate calculations and final answers to 2 decimal places.)
Show less a
Cost per minute of the resource supplied
Time-driven activity rate
Line-item oicking
Packaging
Loading Deliveries
Tota shipoing labor costs ass gnec to:
Oustomer L
Customer M
Customer N
Expert Solution
Trending now
This is a popular solution!
Step by step
Solved in 9 steps with 8 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,