Weimar 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 "potential adjustment in the number of employees" would be closest to:
A) 7.00 employees
B) (7.00) employees
C) (6.00) employees
D) 6.00 employees

Question

Weimar 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 "potential adjustment in the number of employees" would be closest to:
A) 7.00 employees 
B) (7.00) employees 
C) (6.00) employees 
D) 6.00 employees

Quizplus · Accepted Answer

11eacbfc_c86e_9a49_8ffe_7775b22c4a86_TB7552_00 Step 1: Calculate the used capacity in minutes
 11eacbfc_c86e_9a4a_8ffe_f529bbbf6405_TB7552_00 Step 2: Calculate the unused capacity in minutes
 11eacbfc_c86e_c15b_8ffe_015ed0f79976_TB7552_00 Step 3: Calculate the unused capacity in number of employees
 11eacbfc_c86e_e86c_8ffe_b377b2396f8a_TB7552_00 Step 4: Calculate the financial impact of matching capacity with demand
 11eacbfc_c86e_e86d_8ffe_17b3952d44a7_TB7552_00

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