Spillett 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) ($350,880)
B) ($263,160)
C) ($347,449)
D) ($307,020)

Question

Spillett 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) ($350,880) 
B) ($263,160) 
C) ($347,449) 
D) ($307,020)

Quizplus · Accepted Answer

11eacbfc_c871_f5c1_8ffe_9bb09c76f1d6_TB7552_00 Step 1: Calculate the used capacity in minutes
 11eacbfc_c872_1cd2_8ffe_c385998678c8_TB7552_00 Step 2: Calculate the unused capacity in minutes
 11eacbfc_c872_1cd3_8ffe_1b67d40b695c_TB7552_00 Step 3: Calculate the unused capacity in number of employees
 11eacbfc_c872_43e4_8ffe_2b4fd60088a4_TB7552_00 Step 4: Calculate the financial impact of matching capacity with demand
 11eacbfc_c872_43e5_8ffe_1bd1f2cd2195_TB7552_00

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