Deninno Corporation is conducting a time-driven activity-based costing study in its Tech 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) ($151,200)
B) ($189,000)
C) ($113,400)
D) ($186,698)

Question

Deninno Corporation is conducting a time-driven activity-based costing study in its Tech 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) ($151,200) 
B) ($189,000) 
C) ($113,400) 
D) ($186,698)

Quizplus · Accepted Answer

11eacbfc_c874_3ec9_8ffe_8b73db81d943_TB7552_00 Step 1: Calculate the used capacity in minutes
 11eacbfc_c874_65da_8ffe_d1a0ea29f7e8_TB7552_00 Step 2: Calculate the unused capacity in minutes
 11eacbfc_c874_65db_8ffe_dd43fe0457b0_TB7552_00 Step 3: Calculate the unused capacity in number of employees
 11eacbfc_c874_8cec_8ffe_3d603e7ff3fe_TB7552_00 Step 4: Calculate the financial impact of matching capacity with demand
 11eacbfc_c874_8ced_8ffe_8fc51a8eee64_TB7552_00

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