Labour Information
– Regular Rate £15.00/hr
– Overtime Rate £22.50/hr
– Targeted Labour Cost £12,000/wk
– Labour Hours Needed 800/wk
– Any hour worked over 40 hrs/wk must be paid overtime rate
Question
For a 13-person team, how many extra workers should be hired to meet the labour hours needed without overtime?
Answers
Answer:
A short ex
Normal working rate =
R
s
.
x
and Overtime working rate =
R
s
.
2
x
Total no. of working hours =
20
Overtime working hrs =
y
∴
Normal working hrs =
(
20
−
y
)
hrs
Total earned
E
=
(
20
−
y
)
x
+
2
x
(
y
)
=
x
(
20
−
y
)
+
2
x
y
Therefore the number of extra workers who should be hired is 10 workers.
Given:
Labor information,
Regular Rate = £15.00/hr
– Overtime Rate = £22.50/hr
– Targeted Labour Cost = £12,000/wk
– Labour Hours Needed = 800/wk
– Any Labor worked over 40 hrs/wk must be paid overtime rate
To Find:
Number of persons in the team = 13 persons
Several extra workers should be hired to meet the labor hours needed without overtime.
Solution:
The given question can be solved as shown below.
Labour Hours Needed = 800/wk
But the team consists of 13 people and one labor can work for 40 hrs/wk without any overtime.
So Labour hours of 13 person team without overtime = 13 × 40 = 420 hrs/wk
Remaining labor hours needed to attain the task = Labour Hours needed - labor hours of 13 person team
⇒ Remaining labor hours needed to attain the task = 800 - 420 = 380.
Now we need extra men to work for 380 hrs/wk
So the number of extra men required = ( Remaining labor hours needed ) / ( Work hour of a single person without overtime )
⇒ The extra men required = 380 / 40 = 9.5 ≅ 10
Therefore the number of extra workers who should be hired is 10 workers.
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