An insurance company has looked at the total salary costs of its call centre staff, which it has traditionally treated as a fixed overhead and not attempted to apportion to individual services. It has determined the following for last year: Total Wages Time on selling policies Time on claims handling Time on policy changes Time on policy cancelling Other activities Call staff £200,000 50% 30% 10% 5% 5% Deputy managers £100,000 10% 30% 30% 5% 25% Managers £80,000 5% 15% 20% 10% 50% Last year, the company sold 100,000 new policies, handled 30,000 claims, made changes to 5,000 policies and cancelled 1,000 policies. Calculate the staffing costs that the company must cover in selling policies, handling claims, changing policies and cancelling policies.
Insurance
An insurance company has looked at the total salary costs of its call centre staff, which it has traditionally treated as a fixed overhead and not attempted to apportion to individual services. It has determined the following for last year:
|
|
Total Wages |
Time on selling policies |
Time on claims handling |
Time on policy changes |
Time on policy cancelling |
Other activities |
|
Call staff |
£200,000 |
50% |
30% |
10% |
5% |
5% |
|
Deputy managers |
£100,000 |
10% |
30% |
30% |
5% |
25% |
|
Managers |
£80,000 |
5% |
15% |
20% |
10% |
50% |
Last year, the company sold 100,000 new policies, handled 30,000 claims, made changes to 5,000 policies and cancelled 1,000 policies.
Calculate the staffing costs that the company must cover in selling policies, handling claims, changing policies and cancelling policies.
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