$9\mathrm{.}52.$ Twae$-$Driven Activity$-$Based Costing

$()$ LO$9)$

Kim Distribution Services $($KDS$)$ distributes food purchased in bulk to small retailers, The firm is divided into roo divisions: Purchasing and Distribution. Purchasing is responsible for ordering goods from the manufseturer, receiving them, and then moving them to the appropriate location in the warchouse. Distribution is responsible for taking orders fron retailers, pieking the produets from the warehouse for the orders, and paskaging the orders for shipment. KDS has a poliey of filling every order on the day of the onder. If the firm is our of a partisular item, it will ship a partial order and complete the onder when the item is back in stoch. Oceasionally, an onder will not huve to be packaged if the reailer chooves to take delivery at ihe KDS loading dock.

Distriburion has $15$ emplojees who are responsible for the activities, and all $15$ are trained no handle ary of the thre tasks Eneh of these emplofzes works $40$ hours per week for $50$ veeks. There is an allowince of $15$ percent of the emplogees' time for tralning and other administrative tasks. The toatl costs of distribution for the coming year are estimated to be $$526,200.$ When asked, the manager of Distribution cstimated the following times for exch of the three activities:

Taking orders $10$ minures.

Picking orders: $14$ minutes.

Packaging orders $20$ minuses

Requind

G$.$ What is the cost per malate for activities in Distrilbution?

b$.$ What is the cost of an order that iequires all three activites?

c Hoveramy mimites of waused eapasity did Distribution hive tor the year?

a$.$ What was the cocr of the unused sapacity in Distribution?