Exercise $9-52($Algo$)$ Time$-$Driven ABC for an Administrative

Service $($LO $9-8,9)$

The manager of the Personnel Department at Binder City has been reading

about time$-$driven ABC and wants to apply it to that department. The manager

has identified four basic activities Personnel Department employees spend

most of their time on: Interviewing, Hiring, Evaluation, and Exit. The department

employs $26$ staff members who perform these activities. The manager provides

the following estimates for the amount of time it takes to complete each of

these activities:

Interviewing: $59$ minutes.

Hiring: $64$ minutes.

Evaluation: $123$ minutes.

Exit: $124$ minutes.

Employees in Personnel work $56\mathrm{.}5-$hour weeks with four weeks for vacation.

Of the $56\mathrm{.}5$ hours, $5$ are reserved for administrative tasks, training, and so on$.$

The costs of the Personnel Department, including any allocated costs from

other staff functions, are $$1,263,880.$ During the year, Personnel conducted

$3,000$ interviews, made $1,020$ hires, made $9,200$ evaluations, and had $495$

separations. Note: Assume $52$ weeks in a year

Required:

a$.$ What is the cost per minute for activities in Personnel?

Note: Round your answer to $2$ decimal places.

b$.$ What is the cost of interviewing and hiring one employee?

Note: 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?

Note: Round your intermediate calculations to $2$ decimal places and

round your final answer to the nearest whole dollar.