Activity Number of orders taken Number of Expedites Returns processed Credit memos issued Minutes to complete activity Building Overhead 7 15 10 8 Jan What Capacity is needed in minutes? What Capacity is Available in minutes? assume 80% efficiency, 8Hours per day, 22 days per month Call Center 6 CSR 5000 200 180 350 $ 1 Supervisors $ 1 Managers $ $ $ Feb 6000 250 150 400 210,000 50,000 80,000 250,000 150,000 Month Mar 4500 180 150 425 Annual Cost Annual Cost Annual Cost Annual Cost Annual Cost Apr 6500 150 140 375 May 5500 300 190 325 Jun 5000 175 170 400

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
Section: Chapter Questions
Problem 5CE: Refer to Cornerstone Exercise 3.4 for data on Dohini Manufacturing Companys purchasing cost and...
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Ee 450.

Activity
Number of orders taken
Number of Expedites
Returns processed
Credit memos issued
Building
Overhead
Total Annual Cost
Cost Per minute
Minutes to
complete
activity
Cost per order
Cost per Expedite
Cost per Return Processed
Cost per Credit Memo
7
15
10
What Capacity is needed in minutes?
What Capacity is Available in minutes?
assume 80% efficiency, 8Hours per day, 22 days per month
Call Center
6 CSR
8
Jan
5000
200
180
350
1 Supervisors $
1 Managers
LA LA LA LA LA
$
$
$
$
Feb
6000
250
150
400
Month
Mar
740,000
4500
180
150
425
210,000 Annual Cost
50,000
Annual Cost
80,000
Annual Cost
250,000 Annual Cost
150,000 Annual Cost
Apr
6500
150
140
375
May
5500
300
190
325
Jun
5000
175
170
400
Transcribed Image Text:Activity Number of orders taken Number of Expedites Returns processed Credit memos issued Building Overhead Total Annual Cost Cost Per minute Minutes to complete activity Cost per order Cost per Expedite Cost per Return Processed Cost per Credit Memo 7 15 10 What Capacity is needed in minutes? What Capacity is Available in minutes? assume 80% efficiency, 8Hours per day, 22 days per month Call Center 6 CSR 8 Jan 5000 200 180 350 1 Supervisors $ 1 Managers LA LA LA LA LA $ $ $ $ Feb 6000 250 150 400 Month Mar 740,000 4500 180 150 425 210,000 Annual Cost 50,000 Annual Cost 80,000 Annual Cost 250,000 Annual Cost 150,000 Annual Cost Apr 6500 150 140 375 May 5500 300 190 325 Jun 5000 175 170 400
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