O’Brian has decided to follow through with his plan. He will fire John and give Danielle a promotion and the Russell Brady. O’Brian & McKinney have decided to reduce the billings of Russell Brady but continue allocating overhead using a single cost driver of professional hours. Ms. McKinney has called in Dinesh to inform him of their decision. During their meeting, Dinesh should make a claim for O’Brian & McKinney to adopt an Activity-Based Costing overhead allocation method, increase the billings of Collin Bennet, and advocate for John Goodfellow, since he had no part in the billing of Russell …show more content…
John Goodfellow provided quality service to Russell Brady, he is not the one to blame for Russell Brady’s complaint of being overcharged. Mr. Loveless, the Controller, is responsible for the miscalculations in costing the overhead. If John Goodfellow is fired and nothing happens to Mr. Loveless, the punishment will be unfairly distributed. This is an organization level of inequality because Mr. Loveless is receiving no punishment because he holds a much higher organizational ranking than John