Baker Company Has 40 Order Operators with Associated Costs of $2,000,000

Essay

Baker company has 40 order operators with associated costs of $2,000,000 per year.Baker calculated that each operator worked about 2,000 hours per year.Allowing for time off,each operator provided about 1,600 or productive work per year.On average,it takes an order entry employee about 0.2 hour to enter the basic customer information for a manual customer order.In addition,manual orders require an operator to spend an additional 0.04 hour to enter each line item on the order.
a.What is the rate per hour for each order entry employee?
b.What is the order entry cost associated with a manual order with 10 line items?