Direct Labor Budget for Service
The School of Accounting (SOA) at State University is planning
its annual fundraising campaign for accounting alumni. This year,
the SOA is planning a call-a-thon and will ask Beta Alpha Psi
members to volunteer to make phone calls to a list of 5,000 alumni.
The Dean's office has agreed to let Beta Alpha Psi use their
offices from 6 p.m. to 9 p.m. each weekday so that they will have
access to phones. Each volunteer will be provided with a phone and
a script with an introduction and suggested responses to various
questions that had been asked in the past. Carol Johnson, Beta
Alpha Psi faculty advisor, estimates the following:
Of the 5,000 phone numbers, roughly 10 percent will be wrong
numbers (because alumni change addresses and phone numbers without
updating State University). In that case, the student is instructed
to apologize to the answering party, hang up, and move on to the
next phone number. Each of these calls takes about three
minutes.
Another 15 percent will be correct numbers, but no one is home
and the answering machine picks up. In that case, the student is
instructed to simply hang up and move on to the next phone number.
Each of these calls takes about two minutes.
Each time an alumnus answers the phone, the student is
instructed to introduce him or herself and read the scripted
introduction. The student is encouraged to engage the alumnus in
conversation and reminiscences about State U and bring the alum up
to date on the wonderful things that are happening in the SOA. Some
calls are longer, some shorter, but the average call length is 10
minutes.
Required:
1. Prepare a direct labor budget, in hours, for the
fundraising call-a-thon. If 10 students volunteer, how many
evenings will the phone-a-thon take? If required, round your
answers to two decimal places.
The School of Accounting (SOA)
Direct Labor Budget In Hours
Total minutes
Total student hours
Total hours per volunteer
Total nights of calling
2. What if the phone-a-thon can be moved to the State
University Foundation phone bank? That facility has an automated
calling system that will automatically dial the phone numbers and
route all answered calls directly to students. As a result, no time
is spent dialing and listening to answering machines. The time
savings due to having the numbers automatically dialed and routed
mean that the average length of a wrong number call drops to one
minute and the average length of an alumni call drops to eight
minutes. Prepare a direct labor budget, in hours, for the
fundraising call-a-thon at the State University Foundation. If 10
students volunteer, how many evenings will the phone-a-thon take?
If required, round your answers to two decimal places. If an amount
is zero, enter "0".
State University Foundation
Direct Labor Budget In Hours
Total minutes
Total student hours
Total hours per volunteer
Total nights of calling