Wrench 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: On the Capacity Analysis report in time-driven activity-based costing, the "potential adjustment in the number of employees" would be closest to:
A) 0.00 employees
B) 2.00 employees
C) 1.00 employees
D) (1.00) employees

Question

Wrench 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:    On the Capacity Analysis report in time-driven activity-based costing, the "potential adjustment in the number of employees" would be closest to:
A) 0.00 employees 
B) 2.00 employees 
C) 1.00 employees 
D) (1.00) employees

Quizplus · Accepted Answer

11eacbfc_c84f_a040_8ffe_8f371c2a98a3_TB7552_00 Step 1: Calculate the used capacity in minutes
 11eacbfc_c84f_c751_8ffe_d1c72bb1e7a2_TB7552_00 Step 2: Calculate the unused capacity in minutes
 11eacbfc_c84f_c752_8ffe_492122d95c51_TB7552_00 Step 3: Calculate the unused capacity in number of employees
 11eacbfc_c84f_c753_8ffe_d94391fe8ea6_TB7552_00 Step 4: Calculate the financial impact of matching capacity with demand
 11eacbfc_c84f_ee64_8ffe_b3f6960a9839_TB7552_00

Wrench Corporation Is Conducting a Time-Driven Activity-Based Costing Study in Its