A salaried staff person costs $50,000 and reports time at work of 2,000 hours. Naive model for costing jobs: Application rate for staff person = $50,000 2,000 hours = $25/hr But staff person is only used intensively on chargeable client work from January to June: hours Jan June 200 hours/month 6 200 = 1,200 July December 100 hours/month 6 100 = 600 1,800 Training 100 Unassigned 100 2,000 Page 2 Actual, Normal, and Standard Costing B A 521 Should a job in January be costed at the same amount as a job in July? If so, does this lead to efficient resource allocation? When should training take place? What is the opportunity cost of training? Should you solicit work at $24/hr in January? In July? Should you solicit work at $28/hr in January? In July?