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Documente Cultură
Costs
Materials $100.00 $ per unit
Inventory holding cost $1.50 $ per unit per month
Marginal cost of stockout $5.00 $ per unit per month
Marginal cost of subcontracting $20.00 $ per unit ($120 less $100 material cost)
Hiring and training cost $200.00 $ per worker
Layoff cost $250.00 $ per worker
Labor hours required per unit 5.0 $ per unit
Straight-line cost (first eight hours each day) $4.00 $ per hour
Overtime cost (time and a half) $6.00 $ per hour
Jan. Feb. Mar. Apr. May Jun Jul Aug Sep Oct Nov Dec Total
Days 22 20 21 22 21 20 21 21 21 23 18 22 252
Full-time employees 66 28 130 90 195 290 325 92 45 32 29 60
Full-time days* 1,452 560 2,730 1,980 4,095 5,800 6,825 1,932 945 736 522 1,320 28,897
Full-time-equivalent
41 75 72 68 72 302 576 72 0 68 84 27
part-time employees
FTE days 902 1,500 1,512 1,496 1,512 6,040 12,096 1,512 0 1,564 1,512 594 30,240
* Full-time Days are derived by multiplying the number of days in each month by the number of workers.
F u ll- t im e e q u iv a le n t e m p lo y e e s r e q u ir e d
Exhibit 16.8 Monthly Requirement for Full-Time Direct-Labor Employees (Other than Key Personnel) and Full-Time-Equivalent Part-Time Employees
600
500
400
300
200
100
0
Jan. Feb. Mar. Apr. May Jun Jul Aug Sep Oct Nov Dec
Exhibit 16.9 Three Possible Plans for the Parks and Recreation Department
Alternative 1: Maintain 116 full-time regular direct workers, Schedule work during off-seasons to level workload throught the
year. Continue to use 120 full-time-equivalent (FTE) part-time employees to meet high demand periods.
Wages
Days per Year Hours (Employees (FT, $4.45; PT, Fringe Benefits Adm. Cost
Costs (Exhibit 14.8) x Days x 8 hours) $4.03) (FT, 17%; PT, 11%) (FT, 20%; PT, 25%)
116 full-time regular employees 252 233,856 $1,040,659 $176,912 $208,132
120 part-time employees 252 241,920 $974,938 $107,243 $243,734
Total cost = $2,751,619 $2,015,597 $284,155 $451,866
Alternative 2: Maintain 50 full-time regular direct workers and the present 120 FTE part-time employees. Subcontract jobs
releasing 66 full-time regular employees. Subcontract cost, $1,100,000
Wages
Days per Year Hours (Employees (FT, $4.45; PT, Fringe Benefits Adm. Cost Subcontract
Costs (Exhibit 14.8) x Days x 8 hours) $4.03) (FT, 17%; PT, 11%) (FT, 20%; PT, 25%) Cost
50 full-time employees 252 100,800 $448,560 $76,255 $89,712 $1,100,000
120 FTE part-time employees
Subconstracting Cost 252 241,920 $974,938 $107,243 $243,734
Total Cost = $3,040,443 $1,423,498 $183,498 $333,446 $1,100,000
Alternative 3: Subcontract all jobs previously by 116 full-time regular employees. Subcontract cost $ 1,600,000.
Subcontract all jobs previously performed by 120 full-time-equivalent part-time employees. Subcontract cost $1,850,000
Part-Time Employees,
Part-Time Employees
Equivalent Part-Time
Subcontracting Jobs
Time Direct Labor
Subcontracting
Alternative 3:
Employees