Baker Company Has 40 Order Operators with Associated Costs of $2,000,000

question 68

Essay

Baker company has 40 order operators with associated costs of $2,000,000 per year.Baker calculated that each operator worked about 2,000 hours per year.Allowing for time off,each operator provided about 1,600 or productive work per year.On average,it takes an order entry employee about 0.2 hour to enter the basic customer information for a manual customer order.In addition,manual orders require an operator to spend an additional 0.04 hour to enter each line item on the order.
a.What is the rate per hour for each order entry employee?
b.What is the order entry cost associated with a manual order with 10 line items?

---

Definitions:

CEO's Pay

The compensation package awarded to the chief executive officer of a corporation, including salary, bonuses, and stock options.

Short-termism

A focus on short-term results at the expense of long-term interests.

Quarterly Earnings

A company's profit or earnings report issued every quarter, reflecting its financial performance over a three-month period.

Sustainable Development

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs, typically focusing on environmental, economic, and social pillars.