A tool and die worker is paid $26.50 per hour. The work year consists of 52 40-hour weeks with
overtime schedules for 26 Saturdays.
-The company allows 8 paid holidays and 20 days of vacation.
-Four days of sick leave are budgeted and have historically been used.
-Expected non-chargeable hours are 7%.
-There is no subsidy for performance.
-Non-hourly costs include FICA taxes at current governmental rate,
-Workmen’s compensation at 4.75% of regular wages up to $16,350,
-Accident insurance sum of $1050,
-A major supplemental medical plan for $460, and
-Unemployment insurance of $1600.
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 94%?