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question: A contract cleaning firm estimates that it will take 2520 actual cleaning hours to clean an office block. Unavoidable interruptions and lost time are estimated to take 10% of the workers’ time. If the wage rate is $8.50 per hour. What would be the budgeted labour cost?
Please do explain the workingsFor every 100 hours paid, they will lose 10 hours and therefore only work for 90 hours.
So for every 90 hours of work, they need to pay for 100 hours.So for 2520 hours of work they need to pay for 100/90 x 2520 hours which is 2,800 hours (at $8.50 per hour).
I can’t understand this question
From where did this 90 hours came
I cant understand why it is paid for 100 hoursThe question says that 10% of the workers time is lost, which means only 90% of the time is actually spent working.
Therefore for every 100 hours they paid for, 10% x 100 = 10 hours is lost, and 90% x 100 = 90 hours is actually worked.
Use any number you want – using 100 is easiest because we are looking at percentages – but the end result will be the same.
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