The manager of the Personnel Department at City Enterprises has been reading about time-driven ABC and wants to apply it to her department. She has identified four basic activities her employees spend most of their time on: Interviewing, Hiring, Assessment, and Separation Processing. The department employs 6 staff who perform these activities. The manager provides the following estimates for the amount of time it takes to complete each of these activities:

• Interviewing: 125 minutes.
• Hiring: 100 minutes.
• Assessment: 155 minutes.
• Separation Processing: 130 minutes.

Employees in Personnel work 37-hour weeks with four weeks for vacation. Of the 37 hours, five are reserved for administrative tasks, training, and so on. The costs of the Personnel Department, including any allocated costs from other staff functions, are $1,327,104. During the year, Personnel conducted 1,280 interviews, made 415 hires, made 4,600 assessments, and had 410 separations.

The manager of the Personnel Department decides that her estimate of the activities might be too simple in two ways. First, the time to interview depends on the level of the position for which a candidate is sought. She estimates that for a candidate at the manager level, the additional interviewing time is 200 minutes. (Personnel Department employees only conduct the initial interview, but they accompany the candidate for interviews by the hiring executive or CEO.) For a candidate at the executive level, the additional time for interviewing is 560 minutes (in addition to the time required for a manager).

The second issue she identified is that the time for separation processing depends on whether the separation is voluntary. She estimates that an involuntary separation requires an additional 380 minutes of personnel time.

Required:

a. What is the cost of interviewing a manager? An executive?

b. What is the cost of a voluntary separation? An involuntary separation?