Compute number of overtime hours required-total labor cost

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MKBK Manufacturing Company currently has a capacity of making 1,200,000 hir clippers per year operating one 8 hour shift per day for 250 days a year. Operators will be paid for 8 hours per day wether or not the plant is producing for the whole 8-hour period. The hourly wage rate including the benefits averages $16 for an operator. There are 50 operators on the production line. Operators are paid 1.5 times the regular wages for overtime. Operators are guaranteed a minimum of 2 hours of overtime if required to work overtime, No more than 4 hours of overtime on any given day can be scheduled. The drop in productivity during overtime is 5%. a) for daily production at 100% capacity, compute the number of production units, total labor cost, and average and marginal labor costs. b) compute the number of overtime hours required, total labor cost, average and marginal labor cost for a daily production quantities of 5,000 units. c) Total labor cost, average and marginal labor costs for a daily production quantities of 4,500 units?

Reference no: EM131684237

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