7/24/2019 Bus 503 Chapter 17 HW Solutions

1/2

SOLUTIONS TO EXERCISES

EXERCISE 17-15 (15 MINUTES)

Direct Customer Service

Departments Usin ServicesDeposit !oan

"rovi#er o$ ServiceCost to %e&''ocate# "roportion &mount "roportion &mount

R *5+, (./+) 0., (0/+) 150,Computin .,5 (5/5) *5, (05/5) 20,5Tota' 1,1*7,5 711, *0.,5

3ran# tota' 1,1*7,5

EXERCISE 17-1. (15 MINUTES)

Direct Customer Service

Departments Usin ServicesR Computin Deposit !oanCosts prior to a''ocation *5+, .,5&''ocation o$ RDepartment costs *5+, *5,+(1/1) 275,*(./1) 107,7(0/1)&''ocation o$ ComputinDepartment costs 70*,* *02,(5/5) 02,*(05/5)

Tota' costs a''ocate# toeac4 #epartment 77,* **,1

Tota' cost a''ocate# to#irect customer service#epartments 1,1*7,5

7/24/2019 Bus 503 Chapter 17 HW Solutions

2/2

EXERCISE 17-20 (25 MINUTES)

(a) irst, speci$6 euations to e8press t4e re'ations4ips 9et:een t4e service#epartments;

Notation< H#enotes t4e tota' cost o$ uman Resources

C#enotes t4e tota' cost o$ Computin

Euations ;15 C (1)

C = .,5 > ;1 H (2)

So'ution o$ euations< Su9stitute $rom euation (2) into euation (1);

H = *5+, > ;15(.,5 > ;1H)

;+5H = 5.2,275

H = 57,0 (roun#e#)

Su9stitute t4e va'ue o$ Hinto euation (2);

C = .,5 > ;1(57,0)

C = 7*5,5* (roun#e#)

(9) Cost a''ocationusin t4e reciproca'-

services met4o#< Service Departments

Direct Customer ServiceDepartments

umanResources

(R) Computin Deposit !oanTracea9'e costs *5+, .,5&''ocation o$ RDepartment costs (57,0) 57,*?(;1) 0*2,50?(;.) 171,251?(;0)

&''ocation o$ ComputinDepartment costs 111,0?(;15) (7*5,5*) 072,7+2(;5) 2.,+5*?(;05)

Tota' cost a''ocate# to

eac4 #irect customerservice #epartment 715,2+5 *02,25

Tota' costs a''ocate# 1,1*7,5

?Roun#e#