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Q.1. We are interested in finding the estimated direct-labor cost for the job description of industrial electrician. The year consists of 52 40-hour weeks, and overtime is seasonal for 12 weeks consisting of Saturday work of 8 hours. The contract allows for nine paid holidays and two weeks of vacation at regular time. Four days of sick leave are paid. Expected non-chargeable hours are 5%. A subsidy for performance will be 15%. Non-hourly costs include FICA taxes at the current federal rate, workmen's compensation at 1% of regular wages up to $15,000, accident insurance sum of $200, major medical plans for $500, and Christmas gift of $50. The hourly base is $27.10.
1) Find the effective gross hourly cost.
2) What is the job cost for this electrician if a job requires 25 man-hours?
3) What is the loss or gain if efficiency will be 85% or 115% for the job?
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