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Below is a summary of the last 1 2 months of costs for a service company, showing the total work time and salary costs for
Below is a summary of the last months of costs for a service company, showing the total work time and salary costs for each month:
Month Total work time hours Total salary costs $
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
The company has a normal capacity of hours per month. However, when the company has a busy month ie when demand exceeds normal capacity they hire some additional temporary staff to complete the work, who are paid a higher hourly rate.
Using highlow analysis, calculate the variable labour cost per hour for regular workers ie the first hours of work Show your answer to decimal places.
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