The manager of the Personnel Department at City Enterprises has been reading about time-driven ABC and wants to apply it to her department. She has identified four basic activities her employees spend most of the their time on: Interviewing, Hiring, Assessment, and Separation Processing. The department employs five staff who perform these activities. The manager provides the following estimates for the amount of time it takes to complete each of these activities: • Interviewing: 45 minutes. • Hiring: 60 minutes • Assessment 75 minutes • Separation Processing: 90 minutes. Employees in Personnel work 35-hour weeks with four weeks for vacation. Of the 35 hours, five are reserved for administrative tasks, training, and so on. The costs of the Personnel Department, including any allocated costs from other staff functions, are $972.000. During the year, Personnel conducted 1,200 interviews, made 375 hires, made 3,000 assessments, and had 250 separations Required: a. What is the cost per minute for activities in Personnel? (Round your answer to 2 decimal places.) b. What is the cost of interviewing and hiring one employee? (Round your intermediate calculations and final answer to 2 decimal places.) C. How many minutes of unused capacity did Personnel have for the year? d. What was the cost of the unused capacity in Personnel? (Round your intermediate calculations to 2 decimal places) a Cost per minute Total costs CUnused minutes d. Cost of unused capacity
The manager of the Personnel Department at City Enterprises has been reading about time-driven ABC and wants to apply it to her department. She has identified four basic activities her employees spend most of the their time on: Interviewing, Hiring, Assessment, and Separation Processing. The department employs five staff who perform these activities. The manager provides the following estimates for the amount of time it takes to complete each of these activities: • Interviewing: 45 minutes. • Hiring: 60 minutes • Assessment 75 minutes • Separation Processing: 90 minutes. Employees in Personnel work 35-hour weeks with four weeks for vacation. Of the 35 hours, five are reserved for administrative tasks, training, and so on. The costs of the Personnel Department, including any allocated costs from other staff functions, are $972.000. During the year, Personnel conducted 1,200 interviews, made 375 hires, made 3,000 assessments, and had 250 separations Required: a. What is the cost per minute for activities in Personnel? (Round your answer to 2 decimal places.) b. What is the cost of interviewing and hiring one employee? (Round your intermediate calculations and final answer to 2 decimal places.) C. How many minutes of unused capacity did Personnel have for the year? d. What was the cost of the unused capacity in Personnel? (Round your intermediate calculations to 2 decimal places) a Cost per minute Total costs CUnused minutes d. Cost of unused capacity
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
A. What is the cost per minute for activities in Personnel?
B. What is the cost of interviewing and hiring one employee?
C. How many minutes of unused capacity did Personnel have for the year?
D. What was the cost of the unused capacity in Personnel?
Transcribed Image Text:**Understanding Activity-Based Costing in Personnel Departments**
The manager of the Personnel Department at City Enterprises is interested in implementing time-driven Activity-Based Costing (ABC) to optimize departmental efficiency. This approach involves analyzing how time is spent on core activities: Interviewing, Hiring, Assessment, and Separation Processing. Detailed below are the time estimates required for each activity:
- **Interviewing:** 45 minutes
- **Hiring:** 60 minutes
- **Assessment:** 75 minutes
- **Separation Processing:** 90 minutes
**Work Schedule and Costs:**
Employees in the Personnel Department work a 35-hour week, with four weeks allocated for vacation annually. Of the weekly hours, 5 are dedicated to administrative tasks, training, and similar activities. The total annual cost for the Personnel Department, with allocated additional costs, is $972,000. Throughout the year, the department handled:
- 1,200 interviews
- 375 hires
- 3,000 assessments
- 250 separations
**Calculation Requirements:**
a. Determine the **cost per minute** for activities in Personnel. (Provide answers rounded to two decimal places.)
b. Calculate the **cost of conducting an interview and hiring one employee**. (Include intermediate calculations and round the final answer to two decimal places.)
c. Assess the **unused capacity** for the year in terms of minutes.
d. Evaluate the **cost of unused capacity** for the Personnel department. (Include intermediate calculations and round to two decimal places.)
**Table Overview:**
- **a. Cost per minute:**
- **b. Total costs:**
- **c. Unused minutes:**
- **d. Cost of unused capacity:**
This systematic approach helps in understanding and optimizing personnel resource allocation by precise cost and time tracking for fundamental HR activities.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education