# solution

Problem 7: Labor Cost * 1 shift per day (10 hours) â€¢ 4-day workweek * 6 holidays â€¢ 10 days of vacation â€¢ Base pay = \$16.00/hour â€¢ Fringe = 36% of base wage * 30 minute lunch (not paid); two 15-minute breaks (not paid) . *Do not round hours; keep 2 decimal places when calculating productivity â€¢ When determining number of workers needed, round up when.5 or more, round down when less than.5 24. What is the effective average cost per hour per worker at 100% productivity? a. \$23.18 b. \$22.09 c. \$22.30 d. none of the above 25. Assume current productivity is 70%. Scenario 1: Calculate the total labor cost for the DC at this level of productivity. Assume 350,000 hours of work required for the year.

Scenario 2: Now assume that each worker will work 2 additional hours for each day available for work (overtime) for 1.5 times the base rate per hour for each overtime hour. This overtime will increase worker productivity to 85%. How much will the DC save (ose) in total labor cost for implementing Scenario 2 versus Scenario 1? a. \$1,315,555.00 b. \$1,403,258.88 c. \$1,335,432.96 d. none of the above 2. Which method produces the best bias (CFE)? a simple moving average b.weighted moving average C. exponential smoothing d. none of the above