If the temporary agency is charging $28.00 per hour, how many hours of temporary help will be avail­ able to Carlotta’s department?


CASE 6- 18

Payroll Budget Decisions

The HIM directors in the following situations have been approached by administration with personnel budget concerns and given constraints to apply. Review the 4 budgeting issues presented and make cal­ culations as appropriate.

Budget Decision 1

The HIM director, Linda, has been given $15,000.00 for the overtime needed to catch up on the loose filing.

If the average salary of the HIM clerical staff is $15.75, how many hours of overtime can be worked?

Budget Decision 2

The HIM director, Carlotta, has been given $23,500.00 to hire temporary employees.

If the temporary agency is charging $28.00 per hour, how many hours of temporary help will be avail­ able to Carlotta’s department?

Budget Decision 3

The HIM director, Jose, has been given instructions that he cannot go over $8,100.00 in salary (over­ time) for the week of June 2-8.

Based on the information provided in Table 6-11, how close is he to using the allotted overtime budget for loose filing?


Table 6-11 Sal,ary Expense Calculation

Salary Expense for June 2-8
Employee Number of Hours Worked Salary/Hour Total Earnings
Michaela 40 $15.35
Glenn 40 $18.46
Jerome 22 $17.78
Natasha 32 $16.88
Sarah 40 $19.66

© 2014 Cengage Learnrng® All Rrghts Reserved

Budget Decision 4

As the HIM imaging coordinator, you are in charge of reporting your staff payroll. Overtime is based on 80 hours per 2 weeks. The weekly hours for the past 2 weeks are shown in Table 6-12 and Table 6-13.

l. Your HIM director has asked you if you have had any overtime for this payroll.

2. If so, who worked overtime and how many overtime hours did they work?

Table 6-12 Hours for Week 1

Hours Worked per Employee in Week 1
Employee Monday Tuesday Wednesday Thursday Friday Total
Michaela 8.0 7.5 8.5 6.25 8.0
Glenn 8.0 8.5 9.0 10.5 8.0
Jerome 8.0 7.5 3.0 10.0 8.0
Natasha 9.0 8.0 9.0 8.0 7.5
Sarah 8.0 9.0 8.0 8.0 7.5

© 2014 Cengage Learnrng®. All Rights Reserved

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