Service Costs Outsourcing Eagle's Crest Design is an interior Service Costs Outsourcing Eagle's Crest Design is an interior design firm that specializes in hotel interior decorating The design firm consists of two distinct services Sketching and Installation There are also support functions for the Eagle's Crest Design that are separated into two departments Office and Technology Support Office encompasses all the expenses associated with the office support necessary to run the business Technology Support includes any expenses associated with the computer systems required to operate the business as well as those used to sketch and install the designs Cost data for the services and the support functions are as follows Technology Support $21,000 Office $16,000 Sketching $46,695 Installation $60,305 Total $144,000 The Office and Technology Support costs are allocated based on the service hours The departments receive the following percentage of service hours from the departments Department Receiving Service Technology Support Office Sketching Installation Technology Support 15 45 40 Office 40 25 35 Using the direct method, what is the dollar value of Technology Support allocated to Sketching The direct method Considers the interrelation between Technology Support and Office Considers that Technology Support services Office, but NOT that Office services Technology support Considers that Office support services Office, but NOT that Technology Support services Office Does NOT consider the interrelation between Technology Support and Office Using the matrix method, what is the dollar value of Technology Support allocated to Sketching Assume that all of the costs in this problem are variable Also, assume that the Technology Support department cost included 1,000 hours If you were to outsource the Technology Support division, how many hours of the external technology support provider would the company require a) 850 b) 910 c) 940 d) 1000 Assume that all of the costs in this problem are variable Also, assume that the Technology Support department cost included 1,000 hours If you were to outsource the Technology Support division, what is the cost saved before paying the external provider (what is the amount of expenditures saved) a) $6,400 b) $18,000 c) $21,000 d) $27,400 Assume that all of the costs in this problem are variable Also, assume that the Technology support department cost included 1,000 hours (you paid them a rate of $21 hour) What is the maximum hourly rate bid you would accept from a third party (Note only consider the costs and factors presented in this problem) If $8000 of the Office Support cost referenced above were fixed and could not be eliminated, assuming that everything else is the same, the maximum hourly rate bid you would accept from a third party would for Technology Support would a) Increase b) Decrease c) No change If $10,500 of the Technology Support cost referenced above were fixed and could not be eliminated (i e $10,500 would remain if you were to outsource all 1,000 hours of Technology Support) Assuming that everything else is the same, what is the maximum hourly rate bid you would accept from a third party for Technology Support (please use two decimal places and only input numbers)

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Service Costs/Outsourcing Eagle's Crest Design is an interior... Service Costs/Outsourcing Eagle's Crest Design is an interior design firm that specializes in hotel interior decorating. The

Service Costs/Outsourcing Eagle's Crest Design is an interior...

Service Costs/Outsourcing

Eagle's Crest Design is an interior design firm that specializes in hotel interior decorating. The design firm consists of two distinct services: Sketching and Installation. There are also support functions for the Eagle's Crest Design that are separated into two departments: Office and Technology Support. Office encompasses all the expenses associated with the office support necessary to run the business. Technology Support includes any expenses associated with the computer systems required to operate the business as well as those used to sketch and install the designs. Cost data for the services and the support functions are as follows:

Technology Support $21,000

Office $16,000

Sketching $46,695

Installation $60,305

Total $144,000

The Office and Technology Support costs are allocated based on the service hours. The departments receive the following percentage of service hours from the departments:

Department Receiving Service:

Technology Support

Office

Sketching

Installation Technology Support -- 15% 45% 40%

Office 40% -- 25% 35%

Using the direct method, what is the dollar value of Technology Support allocated to Sketching?
The direct method:

Considers the interrelation between Technology Support and Office

Considers that Technology Support services Office, but NOT that Office services Technology support

Considers that Office support services Office, but NOT that Technology Support services Office

Does NOT consider the interrelation between Technology Support and Office

Using the matrix method, what is the dollar value of Technology Support allocated to Sketching?
Assume that all of the costs in this problem are variable. Also, assume that the Technology Support department cost included 1,000 hours. If you were to outsource the Technology Support division, how many hours of the external technology support provider would the company require?

a) 850

b) 910

c) 940

d) 1000

Assume that all of the costs in this problem are variable. Also, assume that the Technology Support department cost included 1,000 hours. If you were to outsource the Technology Support division, what is the cost saved before paying the external provider (what is the amount of expenditures saved)?

a) $6,400

b) $18,000

c) $21,000

d) $27,400

Assume that all of the costs in this problem are variable. Also, assume that the Technology support department cost included 1,000 hours (you paid them a rate of $21/hour). What is the maximum hourly rate bid you would accept from a third party? (Note: only consider the costs and factors presented in this problem).
If $8000 of the Office Support cost referenced above were fixed and could not be eliminated, assuming that everything else is the same, the maximum hourly rate bid you would accept from a third party would for Technology Support would.

a) Increase

b) Decrease

c) No change

If $10,500 of the Technology Support cost referenced above were fixed and could not be eliminated (i.e $10,500 would remain if you were to outsource all 1,000 hours of Technology Support). Assuming that everything else is the same, what is the maximum hourly rate bid you would accept from a third party for Technology Support (please use two decimal places and only input numbers)?