Hollifield Corporation is conducting a time-driven activity-based costing study in its Order Fulfillment 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) ($199,800)
B) ($233,100)
C) ($259,222)
D) ($266,400)

Question

Hollifield Corporation is conducting a time-driven activity-based costing study in its Order Fulfillment 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) ($199,800) 
B) ($233,100) 
C) ($259,222) 
D) ($266,400)

Quizplus · Accepted Answer

11eacbfc_c851_c337_8ffe_512189bf009c_TB7552_00 Step 1: Calculate the used capacity in minutes
 11eacbfc_c851_ea48_8ffe_87d8603c0a4b_TB7552_00 Step 2: Calculate the unused capacity in minutes
 11eacbfc_c851_ea49_8ffe_e75283a2426d_TB7552_00 Step 3: Calculate the unused capacity in number of employees
 11eacbfc_c851_ea4a_8ffe_63895d836d4a_TB7552_00 Step 4: Calculate the financial impact of matching capacity with demand
 11eacbfc_c852_115b_8ffe_c19dee0e7f40_TB7552_00

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