Facts: The WIX Company Civil Engineers consists of two divisions. The divisions
ID: 2330890 • Letter: F
Question
Facts: The WIX Company Civil Engineers consists of two divisions. The divisions are Water and Waste Water. The company sells engineering services to various customers. The following are the bill rates for the various staff classifications: Vice President $200/hour Senior Engineer $180/hour Staff Engineer $150/hour. The two divisions expect to bill the following hours: water. 10000 hours, vice president at 10% of the time, 30% of Senior Engineer time and remaining to Staff Engineers waste water. 6000 hours, vice president at 20% of the time, 20% of Senior Engineer time and remaining to Staff Engineers. The Direct Labor costs per hours are as follows: Vice President $80/hour Senior Engineer $60/hour Staff Engineer $40/hour. The utilization for each staff members are as follows: Vice President 60%Explanation / Answer
Answer:
Static budget:
2. Flexible budget:
Level 2 difference
Planned benefit less genuine benefit = 1071840 - 1023660 = 48180 ominous
Level 3 difference
Add up to cost difference = 1564160 - 1612340 = 48180 ominous
Deals volume difference = nil
Work cost difference = 1292160 - 1340340 = 48180 ominous
Work rate fluctuation = nil
Work productivity change = Budgeted work cost less genuine work cost = 1292160 - 1340340 = 48180 ominous
3. Recommenndations for extra income and productivity
1. Increment work productivity by enhancing usage of work long periods of VP, evacuating inert time and having execution motivators and extra projects.
2. Increment billable hours by showcasing of organization benefits and getting extra work.
3. Do cost cutting in settled costs like lease, administrator compensations and so on.
Ways to deal with increment generally speaking use of staff
1. Execution motivators
2. Execution based remuneration
3. Set clear focuses for staff
4. Utilize innovation to diminish time devoured of staff
5. Prepare representatives routinely
BILL RATES WATER BILL RATE *WATER WASTE WATER Revenue Vice president 200 1000 200000 1200 240000 Senior engineer 180 3000 540000 1200 216000 Staff engineer 150 6000 900000 3600 540000 1640000 996000 Total revenue 263000 Labour cost vice president 80 4584 365120 senior engineer 60 6562 393720 staff engineer 40 13333 533320 Total labour cost 1292160 Admin salaries 90000 Rent 100000 Utilities 6000 Benefits 76000 Total cost 1564160 Total profit 1071840Related Questions
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