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5 votes
Regular Rate $15.00/hr

Overtime Rate $24.50/hr
Targeted Labor Cost $12,000/wk
Labor Hours Needed 800/wk
Any hour worked over 40 hrs/wk must be paid overtime rate

For a 13-person team, how does the actual weekly labor cost compare to the target?

$15 over target
$300 over target
$740 over target
$2,660 over target
$7,600 over target

1 Answer

4 votes

Explanation:

AIi has generated your answer

To calculate the actual weekly labor cost, we need to consider the regular hours and overtime hours worked by the 13-person team.

Regular hours per week per person: 40 hours

Overtime hours per week per person: Total hours - 40 hours (since any hour worked over 40 hours is considered overtime)

Regular labor cost per week per person: Regular rate * Regular hours

Overtime labor cost per week per person: Overtime rate * Overtime hours

Total labor cost per week for the team: (Regular labor cost per week per person + Overtime labor cost per week per person) * Number of team members

Let's calculate:

Regular labor cost per week per person:

Regular rate * Regular hours = $15.00/hr * 40 hrs = $600.00

Overtime hours per week per person:

Labor hours needed - Regular hours = 800 hrs - 40 hrs = 760 hrs

Overtime labor cost per week per person:

Overtime rate * Overtime hours = $24.50/hr * 760 hrs = $18,620.00

Total labor cost per week for the team:

($600.00 + $18,620.00) * 13 = $248,660.00

Now, let's compare the actual weekly labor cost to the target:

Actual weekly labor cost - Targeted labor cost = $248,660.00 - $12,000.00 = $236,660.00

Therefore, the actual weekly labor cost is $236,660.00 over the target.

So, the correct answer is: $236,660 over target.

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