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6-18: Activity-based costing of order entry costs Hampstead Company's order entry department has 20 operators and costs of $873,600 per year related to salaries, fringe
6-18: Activity-based costing of order entry costs Hampstead Company's order entry department has 20 operators and costs of $873,600 per year related to salaries, fringe benefits, supervision, occupancy and equipment. After taking into account vacations and holidays, Hampstead calculated that each operator worked about 1,920 hours per year. Allowing for breaks, training, and other time off, each operator provided about 1,560 hours of productive work each year. Hampstead uses TDABC for its order entry operations a What is the rate per hour for each order entry employee for Hampstead's ABC system? (1-pt) b) On average, it takes an order entry employee about 0.1 hours to enter the basic customer information for a manual order. In addition, manual orders require an operator to spend an additional 0.02 hours to enter each line item on the order. An operator spends an average of 0.06 hours to check the information on an electronic order, but no further entries are needed for specific line items. What is the order entry cost associated with each of the following two orders assuming an hourly rate of $30 for order entry employees? i. Amanual order with 10 line items. (.5 pt ii. An electronic order with 10 line items. (.5 Rt) 6-18: Activity-based costing of order entry costs Hampstead Company's order entry department has 20 operators and costs of $873,600 per year related to salaries, fringe benefits, supervision, occupancy and equipment. After taking into account vacations and holidays, Hampstead calculated that each operator worked about 1,920 hours per year. Allowing for breaks, training, and other time off, each operator provided about 1,560 hours of productive work each year. Hampstead uses TDABC for its order entry operations a What is the rate per hour for each order entry employee for Hampstead's ABC system? (1-pt) b) On average, it takes an order entry employee about 0.1 hours to enter the basic customer information for a manual order. In addition, manual orders require an operator to spend an additional 0.02 hours to enter each line item on the order. An operator spends an average of 0.06 hours to check the information on an electronic order, but no further entries are needed for specific line items. What is the order entry cost associated with each of the following two orders assuming an hourly rate of $30 for order entry employees? i. Amanual order with 10 line items. (.5 pt ii. An electronic order with 10 line items. (.5 Rt)
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