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FAB Company sells multiple products and uses a? time-driven ABC system. The? company's products must be wrapped individually before shipping. The packaging and shipping department employs 25 people. Each person works 20 days per month on average. Employees in this department work an? eight-hour shift that includes a total of 90 minutes for breaks and a meal. The full? compensation, including fringe? benefits, for each packaging and shipping employee is $4,550 per month.
Requirements 1
Question 1: What is the rate per hour for each packaging and shipping employee at FAB??
Question 2: ?On? average, it takes one packaging and shipping employee 15 minutes to prepare one package and? label, independent of the number or types of items in the? shipment, plus 18 minutes per item to bubble wrap and pack it in the carton. Using FAB ?'s ?time-driven ABC? system, what is the packaging and shipping cost assigned to Order? 705, which consisted of 50 ?items?
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