Roediger Corporation is conducting a time-driven activity-based costing study in its Customer Service 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) ($113,400)
B) ($152,720)
C) ($151,200)
D) ($189,000)

Question

Roediger Corporation is conducting a time-driven activity-based costing study in its Customer Service 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) ($113,400) 
B) ($152,720) 
C) ($151,200) 
D) ($189,000)

Quizplus · Accepted Answer

11eacbfc_c86a_7b80_8ffe_dbdb53ab9543_TB7552_00 Step 1: Calculate the used capacity in minutes
 11eacbfc_c86a_a291_8ffe_01a3c09c8a6d_TB7552_00 Step 2: Calculate the unused capacity in minutes
 11eacbfc_c86a_c9a2_8ffe_6bdeaa4f284a_TB7552_00 Step 3: Calculate the unused capacity in number of employees
 11eacbfc_c86a_c9a3_8ffe_216967767da4_TB7552_00 Step 4: Calculate the financial impact of matching capacity with demand
 11eacbfc_c86a_c9a4_8ffe_1779c63e511b_TB7552_00

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