(Solution) American Packaging Machinery (Case Study) American Packaging Machinery (APM) is a company that provides repair and maintenance services to companies... > Snapessays.com

(Solution) American Packaging Machinery (Case Study) American Packaging Machinery (APM) is a company that provides repair and maintenance services to companies...

Case Project C2 American Packaging Machinery


Help me with this case study from E-Business textbook by Gary Schneider.C2. American Packaging Machinery (Case Study)


American Packaging Machinery (APM) is a company that provides repair and maintenance


services to companies that operate large packaging systems. Packaging systems are arrangements


of machinery that place items in containers such as boxes or bags and apply plastic shrink wrap


to the containers. These machines must be adjusted regularly, and they have hundreds of parts


that cab wear out or fail. APM offers service contracts on most major packaging systems. A


typical service contract provides for an APM technician to make regular visits to the customer


site to perform preventative maintenance. The service contract also includes a certain number of


emergency repair visits per year. APM also sends technicians to perform repairs for companies


that do not have service contracts.


APM technicians are; paid by the hour, additional pay for overtime hours, time they work outside


of standard working hours, such as weekends and holidays.


APM technicians are members of a


labor union, the International Brotherhood of Electrical Workers (IBEW), which negotiates pay


and rates and working conditions for the technicians.


APM subtracts union dues from each


technician’s weekly paycheck and submits the total dues collected to the IBEW regional office.


The union contract currently provides that APM technicians are covered by a medical insurance


plan underwritten by the Prudential Trust Insurance Company. Although APM pays most of the


insurance premium, technicians do pay a part of the premium cost. This contribution to the


premium is withheld from their paychecks each week.


You are the director of electronic commerce for EPM and you report to Laura Adams, APM’s


CIO. Laura asks for your help in outlining a new automated system she wants to install, which


would use EDI and EFT to handle APM’s technicians payroll and related transactions. She has


provided the following narrative that described how the system will work:




Technicians will record their time worked by entering the start and stop times for each job


into a program that runs on their handheld computers (the technicians already use these handheld


computers to look up wiring and mechanical diagrams for the machinery on which they work


and to receive their job assignments). The time worked information will be transmitted from the


handheld computer to APM’s Payroll Department.




The payroll department will summarize the time worked information and send it to


supervisors’ desktop computers. Each supervisor will indicate an authorization for each


technician’s time worked, overtime, and holiday/weekend hours. That authorization will be


returned by the system each day to the Payroll Department.




The Payroll Department will summarize the time worked information each week and


calculate gross pay, deductions, and net pay for each employee. The deductions include the


federal and state taxes that must be withheld by law, the contribution to the medical insurance


premium and the union dues that are withheld under the IBEW union contract.




The payroll Department will send an electronic summary of the payroll information,


including deductions, to the Accounting Department, which will prepare payroll tax returns and


make the necessary entries in the APM accounting system to record payroll and te related tax






The payroll department will send electronic authorizations to APM’s bank to make the


necessary EFT’s to deposit: the amount each technicians net pay to the technician’s bank


account; the amount tax withheld to the account of the appropriate government agency; the


amount of local contributions to the medical insurance premium to the insurance company’s


account; and the amount of the union dues withheld to the IBEW’s account. Most of these


accounts are at other banks


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This question was answered on: Sep 21, 2023

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Sep 21, 2023





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