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A tool and die worker is paid $26.50 per hour. The work year cons ists 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 taxe s 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 re quire 10 man-hours with a productivity of 94%?
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