Question

The Barberton Municipal division of Road Maintenance is charged with road repair in the city of Barberton and the surrounding area. Cindy​ Kramer, road maintenance​ director, must submit a staffing plan for the next year based on a set schedule for repairs and on the city budget. Kramer estimates that the labor hours required for the next four quarters are 7,000​, 12,000​, 19,500​, and 9,000​, respectively. Each of the 11 workers on the workforce can contribute 500 hours per quarter. Payroll costs are $6,000 in wages per worker for regular time worked up to 500 hours, with an overtime pay rate of $ 17 for each overtime hour. Overtime is limited to 20 percent of the​ regular-time capacity in any quarter. Although unused overtime capacity has no​ cost, unused regular time is paid at $ 12 per hour. The cost of hiring a worker is $4,000​, and the cost of laying off a worker is $2,000.

Subcontracting is not permitted. ​(Hint: When calculating the number of​ workers, make sure to round up to the next whole number before proceeding with any further​ calculations.)

a. Find a level workforce plan that relies just on overtime and the minimum amount of undertime possible. Overtime can be used to its limits in any quarter. What is the total cost of the​ plan?

b. Use a chase strategy that varies the workforce level without using overtime or undertime. What is the total cost of this​ plan?

c.

. Consider the following proposed​ plan, for a different demand​ schedule, that combines the strategy of​ hiring, layoffs, and utilizing overtime. Payroll costs are

$6,000

in wages per worker for regular time​ worked, with an overtime pay rate of

$ 17

for each overtime hour. The cost of hiring a worker is

$4,000

and the cost of laying off a worker is

$2,000.

The total cost for this plan would be

​(Enter your response as an​ integer.)

Answer 1

The given situation here is as follows :

Mr. Abott settled an offshore trust in Guernsey with his wife as beneficiary. Later he set up another offshore trust in Cayman with himself as beneficiary. Both trusts contained provisions ‘that during the lifetime of the settlor he would have the right, at any time, to discharge an existing or acting Trustee and to appoint another Trustee in any jurisdiction and he may in his sole discretion determine’. Additionally, any distributions of principal are to be made upon any written statement of facts by the beneficiaries. The terms of both trusts provided that in the event of death of the beneficiary the surviving spouse becomes the beneficiary. Mrs. Abbott died in 2014, Mr. Abbott became the sole beneficiary for both trusts. The Abbots were French citizens and were assessed for back taxes upon the implementation of Common Reporting Standards. It was revealed that they owed back taxes for the years 1985-1988 and 2003-2010. Disturbed by this finding, the Abbots decided to apply for an installment plan whereby they would pay $8,000 monthly until the amount was paid in full. The Abbotts paid monthly instalments for six months and then stopped paying the tax agency. The matter was referred to the Courts where judgment was entered against the Abbots, in 2016 for the full amount owed to the French authorities. The French authorities wish to repatriate all the funds held in the offshore trusts to pay the outstanding liability to the government. Mr. Abbott is standing his ground that the government has no right to the funds which he has placed in the trust company.