Task: An order center has the following data available regarding the activities performed there.
| Activity |
Time needed |
Volume |
| to complete |
Expected |
| Answer phone |
15 minutes |
5,000 calls |
| and take order |
| Process orders |
5 minutes |
4,200 orders |
| Receive orders |
10 minutes |
4,200 orders |
| Handle customer |
5 minutes |
4,200 orders |
| pickup |
Additional information:
Employees work a 2,000-hour work year
Employees salary and benefits average $30 per hour
Required:
1. Determine the FTE (full-time equivalent) needed to perform these activities.
2. Determine the cost related to salaries and benefits that should be allocated to each of the activities.