Question
THE SCENARIO Horace works as the customer service/administrative supervisor at IKEA, a large-scale manufacturer of elegant kitchen fixtures. IKEA is located at 666 Paradise Road,
THE SCENARIO Horace works as the customer service/administrative supervisor at IKEA, a large-scale manufacturer of elegant kitchen fixtures. IKEA is located at 666 Paradise Road, Kingston 77. Romario Collins, a long-time customer, is quite upset today as he reported that when he was explaining to Horace that due to a personal challenge, he was unable to pay in full for the custom-built kitchen cupboard that he ordered, Horace acted as if Romario s payment challenge was none of his concern. Romario said Horace was indifferent to him and that as a long-time customer he deserved better service. Horace reported the issue to his supervisor shortly after and said his behaviour was due to his heavy workload, as, while attending to Romario Collins, he had five other customers waiting. His supervisor and the team spent the next seven days evaluating the department and concluded that changes are needed. Required: Carry out the following activities aimed at changing how certain tasks are carried out at IKEA: - 1. Develop a one-page continuous improvement strategy/plan to show how the team will increase the quality of the service they intend to provide to customers. 2. Design a customer service feedback form which you will use to gather feedback from customers on any improvement since the implementation of the strategy. 3. IKEA operates a job costing system. Prepare an appropriate job costing to custombuild Romario Collins kitchen cupboard. His job number is 8772020 and it requires $310,000.00 of direct materials and $410,000.00 of direct labour. Direct labour cost is at a rate of $1,800.00 per hour. Production overheads are absorbed at a rate of $6,200.00 per direct labour and non-production overheads are absorbed at a rate of 113% of prime cost. Add 53% mark up to job cost. 4. Use the job costing information to prepare a quotation for Romario Collins to show the amount she will be paying and the balance on her account as detailed below: Customers name: Romario Collins Customers address: 69 Constant Spring Avenue; Telephone (876) 777- 8888 Item purchase: one (1) custom-made kitchen cupboard Cost: (input job cost (including mark-up) here) GCT: 18% Discount: 9% Deposit: 20% Balance on account: (input balance here) to be paid by December 24, 2021 5. Prepare a 3-month budget to renovate a small room adjacent to the customer service department. The room will be used to hold private and confidential meetings with clients. (You may use the internet as a guide) 6. As the strategy you and your team developed will require extra staff to adequately serve the customers you are required to develop a recruitment plan to guide the recruitment process. 7. To effectively support the operational plan for the department, you and your team will be required of maintain an adequate stock of stationery and other resources for the department. Below is information relating to receiving and issuing cartridge paper for the printer. a. Using the FIFO (perpetual inventory system), prepare inventory record for the transactions which occurred during the month of November 2021, as below: September 1 Opening stock 25 reams @ $1,200.00 / ream September 1 Issued 10 reams @ $1,200.00 / ream September 2 Received 50 reams @ $1,250.00 / ream September 7 Issued 12 reams @ $1,250.00 / ream September 16 Received 30 reams @ $1,300.00 / ream September 17 Received 150 reams @ $1,300.00 / ream September 21 Issued 140 reams @ $1,300.00 / ream September 30 Issued 60 reams @ $1.300.00 / ream Closing stock as at November 31 _____________ b. Compute the total cost of the cartridge paper issued for the month of November 2021, using FIFO 8.
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