The manager of the Personnel Department at City Enterprises has been reading about time-driven ABC and...

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The manager of the Personnel Department at City Enterprises has been reading about time-driven ABC and wants to apply it to h

business accounting

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Answer 1

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Total cost in personnel= $ 988,000

Total minutes available = $ 2,782,080

Cost per minute = 0.35 (988000/2,782,080)

21 employees *48 weeks *(51-5) hours per week *60 minutes per hour =2,782,080

Cost per minute for activity in personnel =0.97

2- Minutes per activity = 61 interviews+ 76 hiring =137

Cost per minute =0.35*137=47.95

3- Minutes per order = 61 interview +76 hire +107 assess +106 process =total 350

Number of orders =2800 interview +695 hire+6200 asses+330 process

Minutes used =. (2800*61)+(76*695)+(6200*107)+(106*330)=170800+52,820+663,400+34,980=922,000

2782080-922,000=1,860,080

4- (1,860,080*0.35)=651,028

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