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 8 staff who perform these activities. The manager provides the following estimates for the amount of time it takes to complete each of these activities:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
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 8 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: 95 minutes.
• Hiring: 85 minutes.
• Assessment: 125 minutes.
• Separation Processing: 115 minutes.
Employees in Personnel work 34-hour weeks with four weeks for vacation. Of the 34 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 $1,503,360.
During the year, Personnel conducted 1,250 Interviews, made 400 hires, made 4,000 assessments, and had 350 separations.
The manager of the Personnel Department decides that her estimate of the activities might be too simple in two ways. First, the time to
Interview depends on the level of the position for which a candidate is sought. She estimates that for a candidate at the manager level,
the additional Interviewing time is 170 minutes. (Personnel Department employees only conduct the initial Interview, but they
accompany the candidate for Interviews by the hiring executive or CEO.) For a candidate at the executive level, the additional time for
Interviewing is 485 minutes (in addition to the time required for a manager).
The second Issue she identified is that the time for separation processing depends on whether the separation is voluntary. She
estimates that an involuntary separation requires an additional 305 minutes of personnel time.
Required:
a. What is the total time required for the interviewing activity?
b. What is the total time required for the separation processing activity?
c. What is the cost of interviewing a manager? An executive?
d. What is the cost of a voluntary separation? An Involuntary separation?
Complete this question by entering your answers in the tabs below.
Required A
Required B Required C Required D
What is the total time required for the interviewing activity?
Manager
Executive
minutes
minutes
< Required A
Required B >
Transcribed Image Text: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 8 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: 95 minutes. • Hiring: 85 minutes. • Assessment: 125 minutes. • Separation Processing: 115 minutes. Employees in Personnel work 34-hour weeks with four weeks for vacation. Of the 34 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 $1,503,360. During the year, Personnel conducted 1,250 Interviews, made 400 hires, made 4,000 assessments, and had 350 separations. The manager of the Personnel Department decides that her estimate of the activities might be too simple in two ways. First, the time to Interview depends on the level of the position for which a candidate is sought. She estimates that for a candidate at the manager level, the additional Interviewing time is 170 minutes. (Personnel Department employees only conduct the initial Interview, but they accompany the candidate for Interviews by the hiring executive or CEO.) For a candidate at the executive level, the additional time for Interviewing is 485 minutes (in addition to the time required for a manager). The second Issue she identified is that the time for separation processing depends on whether the separation is voluntary. She estimates that an involuntary separation requires an additional 305 minutes of personnel time. Required: a. What is the total time required for the interviewing activity? b. What is the total time required for the separation processing activity? c. What is the cost of interviewing a manager? An executive? d. What is the cost of a voluntary separation? An Involuntary separation? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D What is the total time required for the interviewing activity? Manager Executive minutes minutes < Required A Required B >
Expert Solution
steps

Step by step

Solved in 5 steps with 3 images

Blurred answer
Knowledge Booster
Cost management
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.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education