I. LABOR COST 1. Brew Good Coffee produces and distributes whole bean coffee. Its facility employs 25 employees working on producing, packaging and delivering bags of coffee. Brew Good's owners want to calculate the hourly direct labor costs of its factory employees for the previous year. First, the owners determine the total expenses for the 25 employees by adding up wages, benefits and other contributions. The amount is 4,500,000, which represents total direct labor costs for the year. Next, the company adds up the number of hours the factory employees worked in the past year. Twenty employees worked 40 hours a week for 50 weeks. The other five employees worked 35 hours a week for 48 weeks of the year. What is the per-hour direct labor costs.
I. LABOR COST 1. Brew Good Coffee produces and distributes whole bean coffee. Its facility employs 25 employees working on producing, packaging and delivering bags of coffee. Brew Good's owners want to calculate the hourly direct labor costs of its factory employees for the previous year. First, the owners determine the total expenses for the 25 employees by adding up wages, benefits and other contributions. The amount is 4,500,000, which represents total direct labor costs for the year. Next, the company adds up the number of hours the factory employees worked in the past year. Twenty employees worked 40 hours a week for 50 weeks. The other five employees worked 35 hours a week for 48 weeks of the year. What is the per-hour direct labor costs.
Chapter2: Loads On Structures
Section: Chapter Questions
Problem 1P
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Question
![I.
LABOR COST
1. Brew Good Coffee produces and distributes whole bean coffee. Its facility
employs 25 employees working on producing, packaging and delivering bags
of coffee. Brew Good's owners want to calculate the hourly direct labor costs
of its factory employees for the previous year. First, the owners determine the
total expenses for the 25 employees by adding up wages, benefits and other
contributions. The amount is 4,500,000, which represents total direct labor
costs for the year. Next, the company adds up the number of hours the
factory employees worked in the past year. Twenty employees worked 40
hours a week for 50 weeks. The other five employees worked 35 hours a
week for 48 weeks of the year. What is the per-hour direct labor costs.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F60e5f81f-43dd-4c28-aa6f-7dfe3f7134fc%2Ffe430481-e37e-4947-9961-79c36dff4ad3%2F8mb1wb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:I.
LABOR COST
1. Brew Good Coffee produces and distributes whole bean coffee. Its facility
employs 25 employees working on producing, packaging and delivering bags
of coffee. Brew Good's owners want to calculate the hourly direct labor costs
of its factory employees for the previous year. First, the owners determine the
total expenses for the 25 employees by adding up wages, benefits and other
contributions. The amount is 4,500,000, which represents total direct labor
costs for the year. Next, the company adds up the number of hours the
factory employees worked in the past year. Twenty employees worked 40
hours a week for 50 weeks. The other five employees worked 35 hours a
week for 48 weeks of the year. What is the per-hour direct labor costs.
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