FAB

FAB Company sells multiple products and uses atime-driven ABC system. Thecompany's products must be wrapped individually before shipping. The packaging and shipping department employs 25

25 people. Each person works 20

20 days per month on average. Employees in this department work aneight-hour shift that includes a total of 90

90 minutes for breaks and a meal. The fullcompensation, including fringebenefits, for each packaging and shipping employee is $ 4 comma 550

$4,550 per month.

Requirements 1

What is the rate per hour for each packaging and shipping employee at FAB

FAB?

Onaverage, it takes one packaging and shipping employee 15

15 minutes to prepare one package andlabel, independent of the number or types of items in theshipment, plus 18

18 minutes per item to bubble wrap and pack it in the carton. Using FAB

FAB's time-driven ABCsystem, what is the packaging and shipping cost assigned to Order705, which consisted of 50

50 items?

Requirement(a) What is the rate per hour for each packaging and shipping employee at FAB

FAB?

Usingtime-driven ABC, what is the rate per hour for each packaging and shipping employee at FAB

FAB? Determine theformula, then calculate the rate per hour for each employee.

--------------------/-----------------------------------=Rate per hour

-------------------/-----------------------------------=

Requirement(b) Onaverage, it takes one packaging and shipping employee 15

15 minutes to prepare one package andlabel, independent of the number or types of items in theshipment, plus 18

18 minutes per item to bubble wrap and pack it in the carton. Using FAB

FAB's time-driven ABCsystem, what is the packaging and shipping cost assigned to Order705, which consisted of 50

50 items?

Determine theformula, then calculate the cost assigned to Order 705. (Enter the hours utilized to two decimalplaces, X.XX. Enter the cost assigned to the nearestcent, $X.XX.)

_______________x_________________________=Cost assigned

_______________x_________________________=