Labor InformationRegular Rate $17.00/hrOvertime Rate $22.50/hrTargeted Labor Cost $11,050/wkLabor Hours Needed 650/wkAny hour worked over 40 hrs/wk must be paid overtime rate1729277492650How many workers are needed to meet the targeted labor cost?
Question
Labor InformationRegular Rate 22.50/hrTargeted Labor Cost $11,050/wkLabor Hours Needed 650/wkAny hour worked over 40 hrs/wk must be paid overtime rate1729277492650How many workers are needed to meet the targeted labor cost?
Solution
To calculate the number of workers needed to meet the targeted labor cost, we first need to determine how many hours of regular and overtime work can be afforded within the targeted labor cost.
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First, let's calculate the maximum number of regular hours that can be afforded within the targeted labor cost. We do this by dividing the targeted labor cost by the regular rate.
17.00 = 650 hours
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Since any hour worked over 40 hours per week must be paid at the overtime rate, we need to calculate how many workers can work 40 hours per week within the 650 hours.
650 hours / 40 hours/worker = 16.25 workers
Since we can't have a fraction of a worker, we'll need to round up to the nearest whole number. So, we'll need 17 workers to work 40 hours per week.
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However, one of these workers will not be working a full 40 hours, but rather the remaining hours after the other 16 workers have worked their 40 hours.
Remaining hours = 650 hours - (16 workers * 40 hours/worker) = 10 hours
So, to meet the targeted labor cost, 16 workers will need to work 40 hours per week and 1 worker will need to work 10 hours.
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