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a manufacturing organization has 24 employees who are paid a basic hourly rate of $6 for a standards of 38 hours week with any overtime hrs being paid at a rate of time and half. In a typical week employees all work 4hrs of overtime and produce 2500 units of the organisation product.
what is the total labour cost for the product?
a) 2.19 b)2.30 c)2.42 d)2.53Please do not just set test questions – you must have an answer in whichever book you found the question.
In future ask about which part of the answer is giving you a problem 🙂Each employee is paid 38 hours at $6 = $228, plus overtime of 4 hours at 1.5 x $6 = $24.
So a total of $252.There are 24 employees, so a total of 24 x $252 = $6,048
2500 units are produced, so the cost per unit = 6048/2500 = $2.42
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