Question

Labor Information

Regular Rate $16.00/hr

Overtime Rate $23.50/hr

Targeted Labor Cost $12,000/wk

Labor Hours Needed 750/wk

Any hour worked over 40 hrs/wk must be paid overtime rate



18

58

230

924

5405

For a 13-person team, on average, how many overtime hours will each person need to work?

Answer 1

Explanation:

First, let's calculate the total number of regular hours the team can work without going into overtime. Since each person can work 40 hours per week without overtime, for a 13-person team, this would be 13x40=520 hours.

Next, we need to find out how many overtime hours are needed. The total labor hours needed is 750 hours, so the overtime hours would be 750-520=230 hours.

Finally, we divide the total overtime hours by the number of team members to find the average overtime hours per person: 230/13 ≈ 17.69 hours.

So, on average, each person will need to work approximately 17.69 overtime hours per week.