Question
6. One company produced 450,000 pieces last year. These are sold at $40.00 each. This company has a staff of 75 employees in the production
6. One company produced 450,000 pieces last year. These are sold at $40.00 each. This company has a staff of 75 employees in the production area. The hourly pay is $8.25. The work shift is eight hours a day five days a week. They work 48 weeks a year. In addition, one Saturday per month, 20 employees are selected for a special 10-hour shift at a rate of $12.00 per hour. Monthly, $180,000.00 is spent on materials. This company pays $25,000.00 in storage and transportation subcontracts per month. The cost of indirect labor is equivalent to 110% of direct labor. Last year's profits had a cost of $157,000.00. Equipment depreciation is $6,575.00 per month. Insurance costs $10,000.00 per quarter. Calculate the following: a. PP direct labor b. PP paid wages c. PP materials d. PT
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