Question
Kamonzue manufactures a product which is used for fishing. The labour force consists of 5 technicians who are paid GHS100 per hour for a 40
Kamonzue manufactures a product which is used for fishing. The labour force consists of 5 technicians who are paid GHS100 per hour for a 40 hour week and each worker is entitled to 6 weeks leave a year. Every week of the year the individual workstation of each technician has to be shut down for 4 hours for cleaning. The technicians are allowed time for meal breaks, union meetings and training, which is the equivalent of 4 days per person per year and sickness normally adds 1 more day per person per year. (NB: assume that a year consists of 52 weeks 5 days, 40 hours per week). Required a) Calculate the total labour cost b) Calculate the total productive hours c) Calculate the productive direct labour rate per hour which Kamonzue should use to price pieces of work for customers.
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