Refer to the data in Exercise 7A-1. In addition, assume that Saratoga Company provided the following activity
Question:
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.)
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Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
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