Question: A tool and die worker is paid $17.50 per hour. The work year consists of 52 40-hour weeks with overtime schedules for 26 Saturdays. The company allows 8 paid holidays and 10 days of vacation.
Four days of sick leave are budgeted and have historically been used. Expected non-chargeable hours are 4%. There is no subsidy for performance. Non-hourly costs include FICA taxes at current governmental rate,
Workmen's compensation at 4% of regular wages up to $15,000,
Accident insurance sum of $850,
A major supplemental medical plan for $450, and
Unemployment insurance of $1,200.
A. Find the effective gross hourly cost.
B. What is the job cost if a job will require 10 man-hours with a productivity of 95%?