The Cost of Operating the Human Resources Department of Goodtime

question 167

Essay

The cost of operating the Human Resources department of Goodtime Foods Inc.includes $216,000 of fixed costs and $57,600 of variable costs.The department normally budgets 7,200 human resource hours a year.Two departments receive human resource support, Production and Sales.Production is budgeted at 5,040 hours a year, while Sales is budgeted the remainder.Required:
a.In July, Production used 600 human resource hours and Sales used 200 hours.How much did each department receive in human resource costs assuming a single-rate is used based on budgeted hours?
b.In August, Production used 500 human resource hours and Sales used 200 hours.How much did each department receive in human resource costs assuming a dual-rate is used with budgeted usage for fixed costs and actual usage for variable costs?
c.Which method seems more appropriate in this case? Explain.

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Definitions:

Female Orgasmic Disorder

A sexual dysfunction characterized by a woman’s persistent or recurrent difficulty, delay in, or absence of achieving orgasm following sufficient sexual arousal and stimulation.

Pedophilia

A psychiatric disorder characterized by a primary or exclusive sexual interest in prepubescent children.

Erotic Plasticity

The degree to which an individual's sex drive or sexual orientation can be influenced by cultural, social, and situational factors.

Necrophilia

involves a sexual attraction to corpses, considered a paraphilic disorder.