Check my work 3. Blake Furniture, Inc., maintains an Accounts Receivable Department that currently employs eight people. Blake is interested in doing an activity analysis because an outside firm has offered to take over a portion of the activities currently handled by the Accounts Receivable Department. The four main activities handled by the department are (1) billing and recording payments, (2) customer service activities, (3) financial reporting and analysis, and (4) collecting delinquent accounts. 5 The salaries paid to the department's employees are as follows. eBook Print Manager, 1 @ $65,000 per year Clerks, 5 @ $30,000 per year Account specialists, 2 @ $38,000 per year Total $ 65,000 150, eee 76,000 $291,000 eferences It is estimated that the manager of the Accounts Receivable Department spends an equal amount of her time supervising the four main activities. The clerks spend approximately half of their time on billing and recording payments. Their minnie Theron omnino inilli.ba 13 Check my work 7.72 points It is estimated that the manager of the Accounts Receivable Department spends an equal amount of her time supervising the four main activities. The clerks spend approximately half of their time on billing and recording payments. Their remaining time is divided equally between reporting activities and customer service. The two account specialists spend half of their time on delinquent account activities, and the rest of their time is split equally between financial analysis activities and customer service activities that the clerks are not qualified to perform. Paypro, Inc., has proposed that it can perform all the activities related to collecting delinquent accounts for a fee of $50,000 per year. The manager of Paypro argues that Blake can save $26,000 because the $76,000 in salaries paid to the specialists who currently handle all delinquent accounts can be eliminated. If the contract is accepted, it is estimated that the manager of the Accounts Receivable Department would need to devote a quarter of her time to dealing with Paypro employees. eBook Print References a. Using the information given, prepare an activity table to calculate the labor cost for personnel devoted to each of the four main activities of the Accounts Receivable Department b. Should Blake accept or reject Paypro's offer to take over its delinquent account activities? 3 Check my work Complete this question by entering your answers in the tabs below. Required A Required B Using the information given, prepare an activity table to calculate the labor cost for personnel devoted to each of the four main act of the Accounts Receivable Department. ook rint rences BLAKE FURNITURE, INC. Accounts Receivable Department Activity Category Billing and Financial Customer Recording Service Reporting & Payments Analysis 1/4 time 1/4 time 1/4 time Labor Category Delinquent Accounts Total Labor Resources 1 4 time Manager