Refer to the data in Exercise 7A-1. In addition, assume that Saratoga Company provided the following activity data for all jobs produced during the year:
Refer to the data in exercise 7A-1.
Number of employees ................................ 12
Average salary per employee ................. $28,000
Weeks of employment per year ...................... 52
Hours worked per week ............................... 40
Practical capacity percentage .......................85%

Required:
1. Calculate Saratoga's used capacity in minutes.
2. Calculate Saratoga's unused capacity in minutes.
3. Calculate Saratoga's unused capacity in number of employees. (Do not round your answer to a whole number.)
4. Calculate the impact on expenses of matching capacity with demand. (Be sure to round your potential adjustment in the number of employees to a whole number.)

Transcribed Image Text:

Requisition Processing tiel Evaluation Inspection 15 45 30 Job X Job Y Job Z Number of requisitions processed Number of bid evaluations 5 4 4 6 63 Bid Processing Evaluation Inspection 9.400 Requisition 7,000 10,000