EFFECTIVE COST OF LABOR QUESTIONS, ALL INFO INCLUDED IN PICTURES, SHOW WORK. Do
ID: 3148710 • Letter: E
Question
EFFECTIVE COST OF LABOR QUESTIONS, ALL INFO INCLUDED IN PICTURES, SHOW WORK.
Do not round hours; keep 2 decimal places when calculating productivity * When determining number of workers needed, round up when .5 or more, roun than .5 d down when less 24, what is the effective average cost per hour per worker at 100% productivity? a. $21.96 b. $20.68 c. $23.74 d. none of the above Assume current productivity is 75%. Scenario 1: Calculate the total labor cost for the DC at this level of productivity. Assume 300,000 bours of work required for the year. Scenario 2: Now assume that each worker will work 2 additional hours for each day available for work (overtime) for 1.5 times the base rate per hour for each overtime hour. This overtime will increase worker productivity to 86%. How much will the DC save (lose) in total labor cost for implementing Scenario 2 versus Scenario 1? a. $557,782.20 b. $606,096.00 c. $593,867.80 d. none of the aboveExplanation / Answer
a) total working hours in a year for 100% productivity = (52 weeks * 4 days - 15 days(holiday+vacation))* 10 hours =1930 hours out of 2080(holiday+vacation) paid hours
cost = (1+0.38)*15 = $20.7 (ideal)
actual = 20.7*2080/1930(net paid) = $22.31
b) with 75% productivity cost = 300000*(22.31/0.75) = $89,23,523.31
considering overtime
total working hours in a year for 100% productivity = (52 weeks * 4 days - 15 days(holiday+vacation))* 12 hours =2316 hours out of 2496(holiday+vacation) paid hours
new average cost = 20.7*2316/2496(net paid) = $19.21
cost for project for 86% productivity = 300000*(19.21/0.86) = $6701162.79
difference = $89,23,523.31 - $6701162.79 = $89,23,523.31
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.