ork, Ch 7 6 to customer specfications. The company is conducting a time-driven a
ID: 2548268 • Letter: O
Question
ork, Ch 7 6 to customer specfications. The company is conducting a time-driven activity-based costing study in its Pur aid the study, the company provided the following data regarding its Purchasing Department and three of its many jobs: chasing Department to better understand how Purchasing Department labor costs are consumed by individual jobs. To 10 s 35,000 Hours worked per week 85% Requisition Bid Processing Evaluation Inspection 45 Minutes per unit of the activity Job X 20b Z of requisitions processed Number of bid evaluations Required: 1. Calculate the cost per m 2. Calculate the time-driven activity rate for each of Saratoga's three activities 3. Calculate the total purchasing labor costs assigned to Job X. Job Y and Job Z of the res Complete this question by entering your answers in the tabs below.Explanation / Answer
1)Number of Minutes worked : Number of employees * weeks *hours per week *practical capacity * minutes in an hour
10* 52*40 *.85 *60
1060800 minutes
Labor cost : 35000*10 = 350000
Cost per minute : Labor cost /minutes
350000 /1060800
= $ .32994 per minute [rounded to .33 ]
2)
3)
Activity Activity rate per activity Requisition processing .33*15 =4.95 Bid evaluation .33*45=14.85 Inspection .33*30=9.9Related Questions
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