Overtime and the minimum amount of undertime possible

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Reference no: EM131773641

The Barberton Municipal division of Road Maintenance is charged with road repair in the city of Barberton and the surrounding area. Cindy? Kramer, road maintenance? director, must submit a staffing plan for the next year based on a set schedule for repairs and on the city budget. Kramer estimates that the labor hours required for the next four quarters are 6500, 12,000, 20,000, and 9,500, respectively. Each of the 11 workers on the workforce can contribute 500 hours per quarter. Payroll costs $6000 in wages per worker for regular time worked up to 500 hours with an overtime pay rate of $18 for each overtime hour. Overtime is limited to 20 percent of the? regular-time capacity in any quarter. Although unused overtime capacity has no? cost, unused regular time is paid at $12 per hour. The cost of hiring a worker is $3700 and the cost of laying off a worker is $1400. Subcontracting is not permitted. ?(Hint: When calculating the number of? workers, make sure to round up to the next whole number before proceeding with any further? calculations.)

A. Find a level workforce plan that relies just on overtime and the minimum amount of undertime possible. Overtime can be used to its limits in any quarter. What is the total cost of the? plan?

?$____ (Enter your response as an? integer.)

How many undertime hours does it call? for? ____ hours (Enter your response as an? integer.)

B. Use a chase strategy that varies the workforce level without using overtime or undertime. What is the total cost of this? plan?

cost $_____ (Enter your response as an? integer.)

Reference no: EM131773641

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