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 "unused capacity in minutes" would be closest to:
A) 663,000 minutes
B) 655,660 minutes
C) 677,680 minutes
D) 648,320 minutes

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 "unused capacity in minutes" would be closest to:
A) 663,000 minutes 
B) 655,660 minutes 
C) 677,680 minutes 
D) 648,320 minutes

Quizplus · Accepted Answer

To find the unused capacity in minutes, we need to subtract the total practical capacity (6,784,000 minutes) from the total actual capacity (7,432,320 minutes).

Unused capacity in minutes = Actual Capacity - Practical Capacity
Unused capacity in minutes = 7,432,320 - 6,784,000
Unused capacity in minutes = 648,320

Therefore, the closest answer is option D, 648,320 minutes.

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