please show work 2.18 A tool and die worker is paid $26.50 per hour. The work ye

ID: 2513537 • Letter: P

Question

please show work

2.18 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 10 days of vacation. Four days of sick leave are budgeted and have historically been used. Expect- ed nonchargeable hours are 2%. There is no subsidy for performance. Nonhourly costs in- clude FICA taxes at current governmental rate, workers' compensation at 2% of regular wages up to $20,000, an accident insurance sum of $600, a major supplemental medical plan for $300, and unemployment insurance of $800. (a) Find the effective gross hourly cost.

Explanation / Answer

Solution:

Hours

Costs

Excess

Regular paid clock hours

2080

55,120

Overtime (8 * 26)

208

8,268

Overtime excess (0.5)

2,756

Holidays

-64

-1696

1696

Vacation

-80

-2120

2120

Sick pay

-32

-848

848

Expected non-chargeable (2080 * 0.02

-42

-1102

1102

Chargeable (worked hours)

2078

57,622

Non hourly costs

FICA (55,120 + 8,268) * 0.076

4,817

Workers Comp (20000 * 0.02)

400

Accident Insurance

600

Supplemental medical plan

300

Unemployment Insurance

800

Excess cost total

15,439

Excess hourly cost (15,439 / 2,078)

7.43

Hourly wage

26.5

Effective gross hourly cost

33.93

Percent increase over wage

21.90%