In a Capacity Analysis report in time-based activity-based costing, the unused capacity in number of employees is computed by multiplying the unused capacity in minutes by the practical capacity per employee in minutes.

Capacity Analysis Report

A document evaluating the maximum output capabilities of a business and whether current operations are efficiently meeting these levels.

Time-Based Activity-Based Costing

An approach to costing that assigns costs to products or services based on the amount of time needed to perform certain activities, emphasizing the temporal aspect of resource consumption.

Unused Capacity

Refers to the available production or service delivery capabilities that are not currently being utilized by a business.