Ledonne Corporation is conducting a time-driven activity-based costing study in its Customer Service Department. The company has provided the following data to aid in that study:Ledonne CorporationCustomer Service DepartmentData InputsResource Data: Number of employees 16Average salary per employee$41,040Practical capacity per employee (in minutes) 108,000?Activity Data:Processing OrdersResolving QueriesProcessing Credit ReviewsMinutes per unit of the activity122442?Cost Object Data:All CustomersNumber of orders processed31,320Number of queries resolved21,580Number of credit reviews processed1,220?On the Capacity Analysis report in time-driven activity-based costing, the "potential adjustment in the number of employees" would be closest to:
A. 7.00 employees
B. (8.00) employees
C. (7.00) employees
D. 8.00 employees
Answer: C
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