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Exercise 4 (4 points) CAN Company sells multiple products and uses a TDABC system. The company's products must be wrapped individually before shipping. The packaging
Exercise 4 (4 points) CAN Company sells multiple products and uses a TDABC system. The company's products must be wrapped individually before shipping. The packaging and shipping department employs 30 people. Each person works 22 days per month on average. Employees in this department work an 8-hour shift that includes a total of 60 minutes for breaks and a meal. The full compensation, including fringe benefits, for each packaging and shipping employee is $3,850 per month. Required a. Using the principles discussed in this chapter and TDABC, what is the rate per hour for each packaging and shipping employee at CAN? b. On average, it takes one packaging and shipping employee 15 minutes to prepare a package and label, independent of the number or types of items in the shipment, plus 6 minutes per item to bubble wrap and pack it in the carton. Using CAN's TDABC system, what is the packaging and shipping cost assigned to order 705, which consisted of 50 items
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