One of the operations in the United States Postal Service IS rate of 1.5 letters per second. The letter is mechanically sorted from a three-digit code input by an operator sitting at å key manager of the mechanical sorting operation wants to determine the number of temporary employees to hire for December. The managen estimates that there will be an additional 24,192,000 pieces of mail in December, due to the upcoming holiday season. Assume that the sorting operators are temporary employees. The union contract requires that temporary employees be hired for one mon at a time. Each temporary employee is hired to work 160 hours in the month. a. How many temporary employees should the manager hire for December? employees b. If each temporary employee earns a standard $16.40 per hour, what would be the labor time variance if the actual number of additiona letters sorted in December was 23,895,000? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Direct Labor Standards for a Service Company
One of the operations in the United States Postal Service is a mechanical mail sorting operation. In this operation, letter mail is sorted at a
rate of 1.5 letters per second. The letter is mechanically sorted from a three-digit code input by an operator sitting at a keyboard. The
manager of the mechanical sorting operation wants to determine the number of temporary employees to hire for December. The manager
estimates that there will be an additional 24,192,000 pieces of mail in December, due to the upcoming holiday season.
Assume that the sorting operators are temporary employees. The union contract requires that temporary employees be hired for one month
at a time. Each temporary employee is hired to work 160 hours in the month.
a. How many temporary employees should the manager hire for December?
employees
b. If each temporary employee earns a standard $16.40 per hour, what would be the labor time variance if the actual number of additional
letters sorted in December was 23,895,000? Enter a favorable variance as a negative number using a minus sign and an unfavorable
variance as a positive number.
Transcribed Image Text:Direct Labor Standards for a Service Company One of the operations in the United States Postal Service is a mechanical mail sorting operation. In this operation, letter mail is sorted at a rate of 1.5 letters per second. The letter is mechanically sorted from a three-digit code input by an operator sitting at a keyboard. The manager of the mechanical sorting operation wants to determine the number of temporary employees to hire for December. The manager estimates that there will be an additional 24,192,000 pieces of mail in December, due to the upcoming holiday season. Assume that the sorting operators are temporary employees. The union contract requires that temporary employees be hired for one month at a time. Each temporary employee is hired to work 160 hours in the month. a. How many temporary employees should the manager hire for December? employees b. If each temporary employee earns a standard $16.40 per hour, what would be the labor time variance if the actual number of additional letters sorted in December was 23,895,000? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
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