(Activity analysis) Management at Glover & Lamb Inc. is concerned about controlling factory labor related costs. The following summary is the result of an analysis of the major categories of labor costs for 2010:
Category Don't use plagiarized sources. Get Your Custom Essay on
what activity driver does this practice suggest is a major contributor to labor rela 641319
Get an essay WRITTEN FOR YOU, Plagiarism free, and by an EXPERT!
|
Amount |
Base wages |
$63,000,000 |
Health care benefits |
10,500,000 |
Payroll taxes |
5,018,832 |
Overtime |
8,697,600 |
Training |
1,875,000 |
Retirement benefits |
6,898,500 |
Workers’ compensation |
1,199,940 |
Following are some of the potential cost drivers identified by the company for labor related costs, along with their 2010 volume levels:
Potential Activity Driver |
2010 Volume Level |
Average number of factory employees |
2,100 |
Number of new hires |
300 |
Number of regular labor hours worked |
3,150,000 |
Number of overtime hours worked |
288,000 |
Total factory wages paid |
$71,697,600 |
Volume of production in units |
12,000,000 |
Number of production process changes |
600 |
Number of production schedule changes |
375 |
a. For each cost pool, determine the cost per unit of the activity driver using the activity driver that you believe has the closest relationship to the cost pool.
b. Based on your judgments and calculations in (a), which activity driver should receive the most attention from company managers in their efforts to control labor related costs? How much of the total labor related cost is attributable to this activity driver?
c. In the contemporary environment, many firms ask their employees to work record levels of overtime. What activity driver does this practice suggest is a major contributor to labor related costs? Explain.
Why Choose Us
Top quality papers
We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.
Professional academic writers
We have hired a team of professional writers experienced in academic and business writing. Most of them are native speakers and PhD holders able to take care of any assignment you need help with.
Free revisions
If you feel that we missed something, send the order for a free revision. You will have 10 days to send the order for revision after you receive the final paper. You can either do it on your own after signing in to your personal account or by contacting our support.
On-time delivery
All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.
Original & confidential
We use several checkers to make sure that all papers you receive are plagiarism-free. Our editors carefully go through all in-text citations. We also promise full confidentiality in all our services.
24/7 Customer Support
Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
Our Services
No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.
Essays
You are welcome to choose your academic level and the type of your paper. Our academic experts will gladly help you with essays, case studies, research papers and other assignments.
Admissions
Admission help & business writing
You can be positive that we will be here 24/7 to help you get accepted to the Master’s program at the TOP-universities or help you get a well-paid position.
Reviews
Editing your paper
Our academic writers and editors will help you submit a well-structured and organized paper just on time. We will ensure that your final paper is of the highest quality and absolutely free of mistakes.
Reviews
Revising your paper
Our academic writers and editors will help you with unlimited number of revisions in case you need any customization of your academic papers