Respuesta :

The actual labor cost is $600 over the targeted labor cost.

Given that,

Work done by each person per week = 40 hours

Required labor hours per week = 600 hours

No. of workers in the team = 13

To find,

Actual weekly labor cost = ?

Procedure:

Actual weekly labor cost = No. of workers * no. of hours performed by them

[tex]= 13 * 40[/tex]

[tex]= 520 hours[/tex]

Given that,

[tex]Regular rate = $ 15.00 per hour[/tex]

[tex]Overtime rate = $ 22.50 per hour[/tex]

Thus,

Actual labor cost = (regular hours worked * regular rate) + (overtime * overtime rate)

[tex]= (520 * 15) + ([600 - 520] * 22.50)[/tex]

[tex]= $ 7,800 + $ 1,800[/tex]

[tex]= $ 9600[/tex]

Targeted Labor cost = $ 9,000 per week

Thus, option C i.e. the actual labor cost is $ 600 over the targeted labor cost.

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