Weisgarber Corporation is conducting a time-driven activity-based costing study

Question

Weisgarber 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: Weisgarber Corporation Customer Service Department Data Inputs Resource Data: Number of employees Average salary per employee Weeks of employment per year Minutes available per week (45 hours x 60 minutes) Practical capacity percentage 23 37,560 60 2,700 (expression error)8 Processing Credit Reviews 52 Processing Resolving Activity Data: Minutes per unit of the activity Orders 20 Queries 26 Cost Object Data: Number of orders processed Number of queries resolved Number of credit reviews processed All Customers 49,340 23,640 2,270 Customer G 35 19 Requirecd a. Prepare a time-driven activity-based costing Customer Cost Analysis report that determines the total Customer Service Department cost assigned to Customer G b. Prepare a time-driven activity-based costing Capacity Analysis report for the Customer Service Department that determines the impact on expenses of matching capacity with demand

Explanation / Answer

Step 2 Calculate the time-driven activity rate

Weisgarber Corporation Customer Service Department Customer Cost Analysis Step 1 Calculate the cost per unit of the resource supplied Number of employees 23.00 Average salary per employee          37,560.00 Total cost of resources supplied        863,880.00 Practical capacity per employee            2,160.00 Number of employees                  23.00 Practical capacity of resources supplied 2,980,800.00 Cost per minute of resource supplied                     0.29

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