Question
(show your calculations for all questions) PLEASE CHECK MY ANSWERS Part I: Effective cost per hour 1 shift (8 hours) per day 7 holidays 8
(show your calculations for all questions) PLEASE CHECK MY ANSWERS
Part I: Effective cost per hour 1 shift (8 hours) per day 7 holidays 8 days of vacation Fringe: 40% of base wage Base hourly wage: $16.50 per hour 30-minute lunch (paid) plus two 15-minute breaks (paid) per day.
1. What is the effective cost per hour per employee?
This is my answeris it correct?
Fringe benefits = Base hourly wage * Fringe percentage = $16.50 * 0.40 = $6.60
Next, add the fringe benefits to the base wage to get the total cost per hour: Total cost per hour = Base hourly wage + Fringe benefits = $16.50 + $6.60 = $23.10
Since the employee is getting paid for 8 hours but is productive for only 7 hours (due to breaks and lunch), we need to distribute the cost over the 7 productive hours:
Effective cost per hour = Total cost per hour * (Total hours in a shift / Productive hours in a shift) = $23.10 * (8 / 7) = $23.10 * 1.1429 = $26.40 (approximately)
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