As explained in the Help section for the Workforce Compensation, Training, and P
ID: 2254862 • Letter: A
Question
As explained in the Help section for the Workforce Compensation, Training, and Product Assembly decision screen, if (1) a company pays a drone PAT member an annual base wage of $22,000, an $800 year-end bonus for perfect attendance, and provides a company-paid annual fringe benefits package worth $3,200 and (2) a PAT is paid a $6 assembly quality incentive per UAV drone assembled that is equally divided among 4 PAT members, then if a drone PAT's productivity is 1500 drones per year
a.the labor cost for a drone assembled at overtime would be $76.00.
b. the labor cost for a drone assembled at overtime would be $93.33.
c. the total compensation cost per drone assembled would be $77.07.
d. the labor cost for a drone assembled at overtime would be $85.07
e. the labor cost for a drone assembled at overtime would be $75.33.
please show how you got the answer
Explanation / Answer
Given, a company pays a drone PAT(Product Assembly Team) member an annual base wage of $22,000, an $800 year-end bonus for perfect attendance, and provides a company-paid annual fringe benefits package worth $3,200,
i.e., a income of a single PAT member is $22,000+$800+$3,200=$26,000
The annual income of 4 PAT members is 4*($26,000) = $1,04,000 --------->(1)
and also a PAT is paid a $6 assembly quality incentive per UAV drone assembled that is equally divided among 4 PAT members.
And the Quality incentive per UAV drone for 4 PAT members = $6, and as the PAT's productivity is 1500 drones per year.
The total Annual Quality incentive for 4 PAT members = 1500*($6) = $9,000 --------->(2)
Hence, the Company invests a total labor cost of $1,04,000 + $9,000 [From, (1)+(2)], for 1500 drones
Thus, the Company invests a total labor cost of $1,13,000 for 1500 drones
Thus, for each drone the investment for the labor cost becomes ($1,13,000) / 1500 = $75.33
Hence, the labor cost for a drone assembled is $75.33
e. the labor cost for a drone assembled at overtime would be $75.33 is the answer
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