FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
Bartleby Related Questions Icon

Related questions

Question
Saratoga Company manufactures jobs to customer specifications. The company is conducting a time-driven activity-based costing
study in Its Purchasing Department to better understand how Purchasing Department labor costs are consumed by Individual jobs. To
ald the study, the company provided the following data regarding its Purchasing Department and three of its many jobs:
Number of employees
Average salary per employee
Weeks of employment per year
Hours worked per week
Practical capacity percentage
$ 30,000
52
40
85%
Requisition
Processing
15
Bid Evaluation
Inspection
45
30
Minutes per unit of the activity
Job X
Job Y
Job Z
Number of requisitions processed
Number of bid evaluations
6
3
2
2
1
3
Number of inspections
5
1
5
Now assume that Saratoga Company would like to answer the following "what if" question using its time-driven activity-based costing
system: Assuming our estimated activity demands for all jobs in the next period will be as shown below, how will this affect our job
costs and our staffing levels within the Purchasing Department?
Activity demands for all jobs
Required:
Requisition
Processing
2,400
Bid Evaluation
3,850
Inspection
6,600
1. Will the revised activity demands affect the total Purchasing Department labor costs assigned to Job X, Job Y, and Job Z?
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
decimal places.)
5. Based on the revised activity demands, calculate the impact on expenses of matching capacity with demand. (Be sure to round
down your potential adjustment in the number of employees to a whole number. Negative amount should be Indicated by a minus
sign.)
1. Revised activity demands affect total Purchasing Department labor costs assigned to Jobs X, Y and Z?
2. Used capacity in minutes
3. Unused capacity in minutes
4. Unused capacity in number of employees
5. Impact on expenses of matching capacity with demand
expand button
Transcribed Image Text:Saratoga Company manufactures jobs to customer specifications. The company is conducting a time-driven activity-based costing study in Its Purchasing Department to better understand how Purchasing Department labor costs are consumed by Individual jobs. To ald the study, the company provided the following data regarding its Purchasing Department and three of its many jobs: Number of employees Average salary per employee Weeks of employment per year Hours worked per week Practical capacity percentage $ 30,000 52 40 85% Requisition Processing 15 Bid Evaluation Inspection 45 30 Minutes per unit of the activity Job X Job Y Job Z Number of requisitions processed Number of bid evaluations 6 3 2 2 1 3 Number of inspections 5 1 5 Now assume that Saratoga Company would like to answer the following "what if" question using its time-driven activity-based costing system: Assuming our estimated activity demands for all jobs in the next period will be as shown below, how will this affect our job costs and our staffing levels within the Purchasing Department? Activity demands for all jobs Required: Requisition Processing 2,400 Bid Evaluation 3,850 Inspection 6,600 1. Will the revised activity demands affect the total Purchasing Department labor costs assigned to Job X, Job Y, and Job Z? 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 decimal places.) 5. Based on the revised activity demands, calculate the impact on expenses of matching capacity with demand. (Be sure to round down your potential adjustment in the number of employees to a whole number. Negative amount should be Indicated by a minus sign.) 1. Revised activity demands affect total Purchasing Department labor costs assigned to Jobs X, Y and Z? 2. Used capacity in minutes 3. Unused capacity in minutes 4. Unused capacity in number of employees 5. Impact on expenses of matching capacity with demand
SAVE
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
bartleby
Unlock instant AI solutions
Tap the button
to generate a solution
Click the button to generate
a solution
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education