Mosburg 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:
Required:Prepare a time-driven activity-based costing Capacity Analysis report for the Customer Service Department that determines the impact on expenses of matching capacity with demand.

Time-Driven Activity-Based Costing

An accounting method that assigns costs to products or services based on the actual time activities consume, improving accuracy in costing.

Capacity Analysis

A technique used to determine the production capacity needed by an organization to meet changing demands for its products.

Customer Service Department

A specialized division within a company that handles inquiries, resolves issues, and maintains positive relationships with customers.