Question

Please explain question in detail

12 The manager of the Personnel Department at City Enterprises has been reading about time-driven ABC and wants to apply it to her dentified tour basic activities her employees spend most of the their time on: Interviewing, Hiring, Assessment and Separation Processing. The department employs 22 staff who perform these activities. The manager provides the following estimates for the amount of time it takes to complete each of these activities: points Skipped • Interviewing: 62 minutes. • Hiring: 77 minutes. • Assessment: 109 minutes. • Separation Processing: 107 minutes. eBook Employees in Personnel work 52-hour weeks with four weeks for vacation. Of the 52 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 $989,000. During the year, Personnel conducted 2,900 Interviews, made 715 hires, made 6,400 assessments, and had 335 separations. Print References 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 and round your final answer to the nearest whole dollar.) a. Cost per minute b. Total costs c. Unused minutes d. Cost of unused capacity

Answer 1

a	Cost per minute	$0.33
b	Total costs	$45.87
c	Unused minutes	2,009,620
d	Cost of Unused capacity	$663,175

Explanation:

a.

Total costs in personal	$989,000
Total minutes available	2,977,920*
Cost per minute	$0.33

* 22 employees× (52-5) hours × 48 Weeks ×60 minutes

b.

Total minutes in Interviewing and Hiring = 139 (62+77)

Cost per minute =$0.33

Total cost = 139×$0.33 =$45.87

c.

	Interviewing	Hiring	Assessment	Seperation process	Total
Total available minutes					2,977,920
Minutes per order	62	77	109	107
No of orders	2,900	715	6,400	335
Minutes used	179,800	55,055	697,600	35,845	968,300
Unused minutes					2,009,620

d. Cost of Unused capacity

= Unused minutes × Cost per minute

= 2,009,620×$0.33

=$663,175

____×____

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