Gendel 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) ($264,180)
B) ($301,920)
C) ($226,440)
D) ($269,182)

Question

Gendel 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) ($264,180) 
B) ($301,920) 
C) ($226,440) 
D) ($269,182)

Quizplus · Accepted Answer

11eacbfc_c873_2e4d_8ffe_6dd92f9d5caa_TB7552_00 Step 1: Calculate the used capacity in minutes
 11eacbfc_c873_555e_8ffe_4dbd9ccde6c6_TB7552_00 Step 2: Calculate the unused capacity in minutes
 11eacbfc_c873_555f_8ffe_4bb135beeb14_TB7552_00 Step 3: Calculate the unused capacity in number of employees
 11eacbfc_c873_5560_8ffe_85e202e3e6fe_TB7552_00 Step 4: Calculate the financial impact of matching capacity with demand
 11eacbfc_c873_5561_8ffe_b137dd27c342_TB7552_00

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