MANAGERIAL ACCOUNTING F/MGRS.
6th Edition
ISBN: 9781264100590
Author: Noreen
Publisher: RENT MCG
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Chapter 5A, Problem 5A.2E
Time-Driven Activity-Based Costing LO5—7
Refer to the data in Exercise 5A—1. In addition, assume that Saratoga Company provided the following activity data for all jobs produced during the year:
Required:
- Calculate Saratoga’s used capacity in minutes.
- Calculate Saratoga’s unused capacity in minutes.
- Calculate Saratoga’s unused capacity in number of employees. (Do not round your answer to a whole number.)
- Calculate the impact on expenses of matching capacity with demand. (Be sure to round your potential adjustment in the number of employees to a whole number.)
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Consider a company facing a demand pattern and costs as follows:
Sequential Requirements
Number
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1
20
2
40
3
110
4
120
60
30
20
30
80
120
130
40
800
Month
January
February
March
April
May
June
July
August
September
October
November
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At
ht
5
6
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8
9
10
11
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Total
$25.00
$ 0.20
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E4-14 Venus Creations sells window treatments (shades, blinds, and awnings) to both commercial and
residential customers. The following information relates to its budgeted operations for the current year.
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Chapter 5A Solutions
MANAGERIAL ACCOUNTING F/MGRS.
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