Cost Accounting (15th Edition)
Cost Accounting (15th Edition)
15th Edition
ISBN: 9780133428704
Author: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
Question
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Chapter 19, Problem 19.24E

1.

To determine

Waiting time per student under alternative a. and alternative b.

Given information:

For alternative a,

Average number of students per day is 420 students.

Time taken to advice a student is 12 minutes.

Number of advisors is 12 advisors.

Working time of each advisor is 10 hours.

Minutes in an hour are 60 minutes.

For alternative b,

Average number of students per day is 350 students.

Time taken to advice a student is 12 minutes.

Number of advisors is 10 advisors.

Working time of each advisor is 10 hours.

Minutes in an hour are 60 minutes.

2.

To determine

Cheaper alternative for SMU in terms of salary paid to advisors.

Given information:

For alternative a,

Number of advisors is 12 advisors.

Working days are 10 days.

Wages per day is $100.

For alternative b,

Number of advisors is 10 advisors.

Working days are 10 days.

Wages per day is $100.

Number of advisors working on extra days is 10 advisors.

Extra working days are 2 days.

3.

To determine

Preferred alternative from the point of view of student’s satisfaction.

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