NAN Company sells multiple products and uses a time-driven ABC system. The company's products must be wrapped individually before shipping. The packaging and shipping department employs 15 people. Each person works 12 days per month on average. Employees in this department work an eight-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 $4,620 per month.

Requirements

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

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 NAN's time-driven ABC system, what is the packaging and shipping cost assigned to Order 705, which consisted of 25 items?

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

Using time-driven ABC, what is the rate per hour for each packaging and shipping employee at NAN?

Determine the formula, then calculate the rate per hour for each employee.

Monthly cost per employee	/	Practical capacity per employee	=	Rate per hour
	/		=

Requirement (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 NAN's time-driven ABC system, what is the packaging and shipping cost assigned to Order 705, which consisted of 25 items?

Determine the formula, then calculate the cost assigned to Order 705. (Enter the hours utilized to two decimal places, X.XX. Enter the cost assigned to the nearest cent, $X.XX.)

	x		=	Cost assigned
	x		=