Answer:
To calculate the actual weekly labor cost, we need to consider the regular and overtime hours worked by the team. We know that any hour worked over 40 hours per week must be paid at the overtime rate of $23.50/hr.
Let's calculate the regular and overtime hours worked by the team. Assuming a 40-hour workweek for each team member, the total regular hours worked per week would be 40 x 14 = 560 hours.
To meet the labor hours needed of 750 hours per week, the team would need to work an additional 190 hours. Since any hour over 40 hours per week must be paid at the overtime rate, we can calculate the overtime hours as 190 - (14 x 40) = 30 hours.
Now, we can calculate the actual weekly labor cost as follows:
Regular labor cost = 560 hours x $16/hr = $8,960
Overtime labor cost = 30 hours x $23.50/hr = $705
Total actual weekly labor cost = $8,960 + $705 = $9,665
The targeted labor cost is given as $12,000 per week. Therefore, the actual weekly labor cost of $9,665 is $2,335 less than the targeted labor cost.