A manger receives an annual salary of Php600,000 and his secretary salary of Php180,000. 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 2400 hours a year and the executive 3,000 hours a year.

A manger receives an annual salary of Php600,000 and his secretary salary of Php180,000. 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 2400 hours a year and the executive 3,000 hours a year.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter3: Accounting For Labor

Section: Chapter Questions

Problem 3E

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