Question

You have been approached by administration with personnel budget concerns and given constraints to apply. Review the 4 budgeting issues presented and make calculations as appropriate. Budget Decision 1 You have been given $15,000 for the overtime needs to catch up on work in the department. If the average salary for the clerical staff is $15.75, how many hours of overtime can be worked? Budget Decision 2 You have been given S23,500 to hire temporary employees. If the temporary agency is charging $28 per hour, how many hours of temporary help will be available? Budget Decision 3 You have been given instructions that you cannot go over $8,100 in salary (overtime) for the week of June 2-9. Based on the information provided in Table 6-11, how close to using the allotted overtime are you? Table 6-11 Salary Expense Calculation Salary Expense June 3-5 Number of Hr Salary Hour Total Earnings Employee Michaela SI5.35 STR. 46 Sarah $19.66 Budget Decision 4 You are required to report your staff payroll for the imaging area of the department. Overtime is based on 80 hours per 2 weeks. The weekly hours for the past 2 weeks are shown in Table 6-12 and Table 6-13 1. Did you have any overtime for this payroll? 2. If so, who worked overtime and how many overtime hours did they work? Table 6-12 Hours for Week 1 Hours Worked per Employee is Week 1 Employer MONDAY TUESDAY WEDNESDA THURDAY FRIDAY TOTAL Michaela 8.0 8.0 9.0 8.0 85 9,0 105 7530100 8.0 9.0 8.0 90 O RO Natasha 7.5 75

Answer 1

Budgeting Decision 1
Particulars	Amount
Total amount given for overtime work in department -A	15000
Average salary of clerical staff per hour-B	15.75
No. of hours of overtime that can be worked -A/B	952
Budgeting Decision 2
Particulars	Amount
Total amount given to hire temporary employees -A	23500
Average cost of temporary employees per hour-B	28
No. of hours of temporary help will be available -A/B	839

Budgeting Decision 3
Computation of salary expense for June 2-8
Employee	Hours worked-A	Salary / Hour-B	Salary expense -A*B
Micheale	40	15.35	614
Glenn	40	18.46	738
Jerome	22	17.78	391
Natasha	32	16.88	540
Sarah	40	19.66	786
Total salary	3,070
Alloted overtime salary cost	8,100
Budgeting Decision 4
Employee	sum of no. of hours worked in week 1	sum of no. of hours worked in week 2	total hours worked in 2 weeks	no. of hours of overtime *
Micheale	38.25	39.75	78	0
Glenn	44	42.75	86.75	6.75
Jerome	36.5	41.5	78	0
Natasha	41.5	40	81.5	1.5
Sarah	40.5	39.25	79.75	0
* overtime payments come only if an employee works more than 80 hrs in 2 weeks
overtime wages are payable for Glenn and Natasha for 6.75 hrs and 1.5 hrs