How does the absentee/annual salaries ratio compare to the U.S. plant? Based on the data you have what accounts for the difference?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 4EB: Roper Furniture manufactures office furniture and tracks cost data across their process. The...
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have to compare two plants from the same company, one is a plant in Canada and one is in the U.S. (ALL NUMBERS ARE ALREADY IN CANADIAN).

Here is the data

CANADA:

Yearly Cost of Absenteeism $480,244
Total Salary $7,766,096
Percentage of Salary 6%
Number of Working Days 251
Average Salary Per Day $289.16

US PLANT:

Total U.S. Salaries $6,360,000
Average Salary $69,141.43
Work Days 249
Average Salary Per Day $277.68
Total Cost of Absents $312,386

Extra Calculations:

Average Diff between CAN and US 4%
Absence Cost Diff between CAN and US 35%

QUESTION: How does the absentee/annual salaries ratio compare to the U.S. plant? Based on the
data you have what accounts for the difference?

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