LPC Bank operates a call centre to deal with customer queries. The following information is available:120 call centre operators work in teams. Each team has a supervisor. There are eight supervisors.Call centre operators are paid RM8 per hour and supervisors are paid RM15 per hour.All staff work a 36-hour week.Bonuses are paid to call centre operators if they achieve efficiency and quality targets. For example, if 100% efficiency and quality are achieved the call centre operator receives a bonus of 20% of their basic pay.Bonuses are paid to supervisors if their teams achieve targets. For example, if the team achieves the target of 100% then the supervisor receives a bonus of 20% of their basic pay. Targets and bonuses for call centre operators and supervisors are given in the table below:Target achieved100%95%90%Bonus paid20%15%10% In week 12 the number of call centre operators and supervisors achieving targets was as follows:Target achieved100%95%90%Call centre operators101825Supervisors013 Required:Calculate the total wage cost in week 12 (to the nearest RM)

Calculation of amount of bonus paid : 10 operators = 10 operators x 36 hours x RM8 per hour x 20%…

Answered: LPC Bank operates a call centre to deal…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 5PA: CodeHead Software Inc. does software development. One important activity in software development is...

See similar textbooks

Related questions

Question

100%

LPC Bank operates a call centre to deal with customer queries. The following information is available:
120 call centre operators work in teams. Each team has a supervisor. There are eight supervisors.
Call centre operators are paid RM8 per hour and supervisors are paid RM15 per hour.
All staff work a 36-hour week.
Bonuses are paid to call centre operators if they achieve efficiency and quality targets. For example, if 100% efficiency and quality are achieved the call centre operator receives a bonus of 20% of their basic pay.
Bonuses are paid to supervisors if their teams achieve targets. For example, if the team achieves the target of 100% then the supervisor receives a bonus of 20% of their basic pay.

Targets and bonuses for call centre operators and supervisors are given in the table below:

Target achieved	100%	95%	90%
Bonus paid	20%	15%	10%

In week 12 the number of call centre operators and supervisors achieving targets was as follows:

Target achieved	100%	95%	90%
Call centre operators	10	18	25
Supervisors	0	1	3

Required:

Calculate the total wage cost in week 12 (to the nearest RM)

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Decision to Sell before or after additional processing

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions