please answer question 5-20
24 people work in packaging and shipping, packages must be wrapped individually. They work 20 days per month, 8 hour shifts with 75 min break. full employee benefit package per month is $4050 per employee.
a. what is the rate per hour employee works?
b. it takes 15 mins to prepare a package, 6 mins to bubble wrap a package. using time driven ABC method, what is the packaging and shipping cost assigned to an order of 705. which consisted of 40 items.
ESTIMATED WORKER TIME Actin Manual processing of invoice and cash receipt 10 hour Flex fronic processing of invoice and electronic funds transfer (1 hour Maintain customer file 05 Four The time to process payments of customer invoices depends on whether the customer pays the bill manually or electronically, as shown above. The time to maintain each customer file is the same same Yof all customers. The annual cost of the Accounts Receivable Department is $500,000 and the associated practical capacity of accounts receivable labor is 10,000 hours. The Accounts Receivable Department has six employees. Required (a) What is the capacity cost rate for the Accounts Receivable Department? (b) Zeta's Division 1 has LOUD small- to medium-sized customers who annually generate a total of $10 million in sales, resulting in 1.010 invoices. These customers pay all their invoices manually. What is the annualactivity-based cost associated with Division 1's customers? (c) Zeta's Division 2 has 200 large customers who annually generate a total of $19 million in shawl sales, resulting in 400 invoices. These customers pay all of their invoices electronically What is the annual activity-based cost associated with Division 2's customers? d)/ Suppose half of Zeta's Division 1 customers change their method of payment to electronic next year. How many hours of accounts receivable labor will it require for LOO customers, 2,000 manual invoices, and 2,000 electronicinvoices? How much will Division 1 be charged Ar.). for the accounts receivable function? Will Zeta's costs decrease because of the shift to 50% electronic invoicing in Division 1? LA61 LO3, 5 5-20 Compute activity-based cost rate, time equations CAN 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 24 people. Each person works 20 days per month on average. Employees in this department work an eight-hour shift that includes a total of 75 minutes for breaks and a meal. The full compensation, including fringe benefits, for each packaging and shipping employee is $4,050 per month. Required (a) Using the principles discussed in this chapter and time-driven ABC, 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 5 minutes per item to bubble wrap and pack it in the carton. Using CAN's time-driven ABC system, what is the packaging and shipping cost assigned to Order 705, which consisted of 40 items? 103, 4,5 5-21 Forecasting resource capacity using a time-driven ABC system Refer to the time-driven ABC analysis of forecasting resource capacity for the Madison Dairy ice cream plant example on pages 181-184 of this chapter. Suppose that all the information is the same except for the following
