The Payroll group with a total staff of 4 handles payroll for 25,000 employees. Each payroll employee
Question:
The Payroll group with a total staff of 4 handles payroll for 25,000 employees. Each payroll employee earns $50,000 per year for working 40 hours/week (a normal work week, assume no vacation). 60 hours per week is required to produce 3 unrelated and independent government reports. Each report requires the same amount of time and effort to produce. The remainder of time is spent handling employee requests which are received evenly distributed among the 25,000 employee.
Evaluate the following: (2 Marks)
i. It takes more resources to produce government reports than handling employee requests.
ii. If we could eliminate one of the government reports, the payroll group could handle an increased employee staff count of up to 6,000 employees.
iii. If we could eliminate two of the government reports, we could downsize 1 payroll employee.
iv. It costs the company $5/employee per year to handle employee requests.
Horngrens Financial And Managerial Accounting The Financial Chapters
ISBN: 9780134486840
6th Edition
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura