Question

There is a Quality Inspector that works 22 hours in a week. His salary is $18.10 per hour with a fringe benefit of 30%. During his work, he was able to finish 23353 units. Determine the unit cost for this labor.

Answer 1

To find the unit cost for labor, calculate the total compensation including fringe benefits and divide by the number of units produced. The unit cost for the Quality Inspector's labor is approximately $0.0222 per unit.

Step-by-step explanation:

To determine the unit cost for the labor of a Quality Inspector who works 22 hours in a week with a salary of $18.10 per hour and a fringe benefit of 30%, and finished 23353 units, we need to calculate the total compensation including the fringe benefit and then divide that by the number of units produced.

First, let's calculate the total weekly compensation:

• Hourly wage: $18.10
• Total hours worked: 22
• Weekly salary (without fringe benefits): 22 hours * $18.10/hour = $398.20
• Fringe benefits: 30% of $398.20 = $119.46
• Total compensation: $398.20 + $119.46 = $517.66

Now, divide the total compensation by the number of units:

Total units: 23353

Unit cost = $517.66 / 23353 units = approximately $0.0222 per unit

Therefore, the unit cost for the labor is approximately $0.0222 per unit.