Question
A tool and die worker is paid $17.50 per hour. The work year consists of 52 40-hour weeks with overtime schedules for 26 Saturdays. The
A tool and die worker is paid $17.50 per hour. The work year consists of 52 40-hour weeks with overtime schedules for 26 Saturdays. The company allows 8 paid holidays and 10 days of vacation. Four days of sick leave are budgeted and have historically been used. Expected non-chargeable hours are 4%. There is no subsidy for performance. Non-hourly costs include FICA taxes at current governmental rate, Workmens compensation at 4% of regular wages up to $15,000, Accident insurance sum of $850, A major supplemental medical plan for $450, and Unemployment insurance of $1,200. A. Find the effective gross hourly cost. B. What is the job cost if a job will require 10 man-hours with a productivity of 95%?
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