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Stahl Company is conducting a time-driven activity-based costing study in its Shipping Department. To aid the study, the company provided the following data regarding its Shipping Department and the customers served by the department:

Required:

1. Using the customer cost analysis as demonstrated in Exhibit 7A-2, compute the following:

a. The cost per minute of the resource supplied in the Shipping Department.

b. The time-driven activity rate for each of Stahls three activities.

c.The total labor costs consumed by Customer L, Customer M, and Customer N.

2. Using the capacity analysis as demonstrated in Exhibit 7A-3, compute the following:

a. The used capacity in minutes.

b. The unused capacity in minutes.

c. The unused capacity in number of employees.

d. The impact on expenses of matching capacity with demand.

Number of employees Average salary per employee Weeks of employment per year Hours worked per week Practical capacity percentage 24 $36,500 52 40 80% Line-Item Picking 5 Packaging 15 Loading Deliveries 30 Minutes per unit of the activity Number of line items picked Number of boxes packaged Number of deliveries loaded Customer L 220 34 6 Customer M 120 14 2 Customer N 70 16 10 All Customers 260,000 26,400 11,200 1. Compute the following: a. The cost per minute of the resource supplied in the Shipping Department. b. The time-driven activity rate for each of Stahl's three activities. c. The total labor costs consumed by Customer L, Customer M, and Customer N. (For all requirements, round your intermediate calculations and final answers to 2 decimal places.) II a. Cost per minute of the resource supplied b. Time-driven activity rate: Line-item picking Packaging Loading Deliveries Total shipping labor costs assigned to: Customer L Customer M Customer N 2. Compute the following: a. The used capacity in minutes. b. The unused capacity in minutes. c. The unused capacity in number of employees. (Round your answer to 2 decimal places.) d. The impact on expenses of matching capacity with demand. (Round down your potential adjustment in the number of employees to a whole number.) Show less b. a. Shipping minutes used to meet demand Unused capacity in minutes Unused capacity in number of employees d. Impact on expenses of matching capacity with demand C

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