India’s outsourcing giants — faced with rising wages at home — have looked for growth opportunities in the United States. But with Washington crimping visas for visiting Indian workers, some companies such as Aegis are slowly hiring workers in North America, where their largest corporate customers are based. In this evolution, outsourcing has come home. At its U.S. sites, Aegis says, 90 percent or more of its workers are American.

Questions:

1.  Using the amounts given in the article (pay runs $12 to $14 an hour with bonus checks of up to $730 a month), use an average per hour amount of $13 per hour plus a bonus of $730 to calculate what a call center’s gross pay would be for an individual who works a 40-hour week.

2.  How would you make the journal entry for the bonus?

3.  According to the article, about 5,000 people work at nine U.S. call centers and Aegis aims to triple its U.S. head count to more than 15,000.  Based on this information:
          a. How many people on average work at each call center in the U.S.?
          b. What percentage increase in workers is anticipated?
          c.  From a managerial accounting perspective, what issues would you be concerned with regarding
               this growth?

Source:

Glader, P. (2011). As Indian Companies Grow in the U.S., Outsourcing Comes Home, The Washington Post, May 20 (Retrievable online at http://www.washingtonpost.com/business/as-indian-companies-grow-in-the-us-outsourcing-comes-home/2011/05/17/AFZbrp7G_story.html?hpid=z2)