Deninno Corporation is conducting a time-driven activity-based costing study in its Tech Support Department. The company has provided the following data to aid in that study:Deninno CorporationTech Support DepartmentData InputsResource Data: Number of employees 18 Average salary per employee$37,800 Weeks of employment per year 50 Minutes available per week (40 hours × 60 minutes) 2,400 Practical capacity percentage 75%?Cost ObjectActivity MeasureTotal ActivityMinutes per Unit of the ActivityRouting CallsNumber of calls routed40,37016Resolving ProblemsNumber of problems resolved21,19024Preparing Change OrdersNumber of change orders prepared50042?On the Capacity Analysis report in time-driven activity-based costing, the "impact on expenses of matching capacity with demand"
would be closest to:
A. ($186,698)
B. ($151,200)
C. ($189,000)
D. ($113,400)
Answer: B
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