Demartini 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 "impact on expenses of matching capacity with demand" would be closest to:
A) ($387,000)
B) ($348,300)
C) ($309,600)
D) ($361,802)

Question

Demartini 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 "impact on expenses of matching capacity with demand" would be closest to:
A) ($387,000) 
B) ($348,300) 
C) ($309,600) 
D) ($361,802)

Quizplus · Accepted Answer

11eacbfc_c850_ffdf_8ffe_e3c3b33f391d_TB7552_00 Step 1: Calculate the used capacity in minutes
 11eacbfc_c851_26f0_8ffe_cffdc1db2404_TB7552_00 Step 2: Calculate the unused capacity in minutes
 11eacbfc_c851_26f1_8ffe_112f3204b263_TB7552_00 Step 3: Calculate the unused capacity in number of employees
 11eacbfc_c851_26f2_8ffe_c9547417c914_TB7552_00 Step 4: Calculate the financial impact of matching capacity with demand
 11eacbfc_c851_4e03_8ffe_e39257a8efc5_TB7552_00

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