Question
Polly has eight employees- four labourers, two managers, and two office staff. The labourers make $22 per hour, the managers $28 per hour, and office
Polly has eight employees- four labourers, two managers, and two office staff. The labourers make $22 per hour, the managers $28 per hour, and office staff $16 per hour.
Polly plays employment taxes equal to 15% of her employees salaries and employee benefits equal to 20% of their salaries.
Polly strives to maintain a rate of 2 direct labour hours per product produced. She feels that it is achievable if her employees didnt waste time and worked at a quick pace. She has been training her managers to make sure employees limit their water and washroom visits to designated break times as much as possible.
Last month, the team managed to produce 400 products. The labourers worked an average of 220 hours each. Each labourer earned some overtime pay, resulting in an average monthly wage of $5,500.
Polly is wondering how she is doing with labour costs. Please provide her with some analysis/feedback and make recommendations.
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