An executive receives an annual salary of P500,000 and his secretary a salary of P160,000 a year. A certain task can be performed by the executive, working alone, in 4 hours. If he delegates the task to his secretary it will require him 30 minutes to explain the work and another 45 minutes to check the finished work. Due to the unfamiliarity of the secretary to do the task it takes her an additional time of 6 hours after being instructed. Considering salary cost only, determine the cost of performing the task by each method. If the secretary works 2,400 hours a year and the executive 3,000 hours a year.
An executive receives an annual salary of P500,000 and his secretary a salary of P160,000 a year. A certain task can be performed by the executive, working alone, in 4 hours. If he delegates the task to his secretary it will require him 30 minutes to explain the work and another 45 minutes to check the finished work. Due to the unfamiliarity of the secretary to do the task it takes her an additional time of 6 hours after being instructed. Considering salary cost only, determine the cost of performing the task by each method. If the secretary works 2,400 hours a year and the executive 3,000 hours a year.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
Section: Chapter Questions
Problem 28E
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