A crew of 5 carpenters and 2 laborers will be used to build

A crew of (5) carpenters and (2) laborers will be used to build the formwork for a concrete structure. Work is scheduled on Monday through Friday 10 hr/day and 7 hr on Saturday Overtime at a rate of one and one-half will be paid for all hours over 8 hr/day during the week and double time for all Saturday work. The base wage, taxes, and insurance rates are given in the table. Calculate the hourly, weekly, and monthly cost for the crew Carpenters S32.50/ hr $4.75/S100.00 S3.5/S100.00 of base wage Item Base Wage Worker\'s Compensation Public liability property damage $2.20/S100.00 S1.80/$100.00 of base wage Social security (FICA) State unemployment Federal unemployment Fringe benefits Laborers S24.00/hr 7.65% 3.0% 2.0% $2.10/hr 7.65% 3.0% 2.0% $1.75/hr of actual wage of actual wage of actual wage

Solution

Actual Hour = ( 10 hr/day x 5 days) + ( 7 hr/day x 1 days) = 57 hr.

Pay Hour = weekly straight time +weekly overtime+ Saturday overtime

= ( 5 days x 8 hrs/day @1.0) + ( 5 days x 1 hrs/day @1.5) + ( 1 day x 8 hrs/day x 2.0)

= 40+7.5+16.0

= 63.5 hr

Average hourly hour = [pay hour / Actual hour] x Base wage

Carpenter Cost

Average hourly hour = (63.5 / 57) x $32.50/hr = $ 36.206140/hr

Social security tax = 7.65 % x $ 36.206140/hr = 2.76976971

State unemployment = 3.0% x $ 36.206140/hr = 1.0861842

Federal unemployment = 2.0% x $ 36.206140/hr = 0.7241228

Workers Compensation = $4.75/ $100.00 x $32.50/hr = 1.54375

Public liability/property damage = $2.20/ $100.00 x $32.50/hr = 0.715

Fringe benefits = 2.10

carpenter average hourly cost = $ 45.14496671

carpenter hourly cost = $ 45.14/hour

carpenter weekly cost = $ 45.14496/hr x 53.0 hr/week = $ 2392.68288/week

carpenter monthly cost = $ 2392.68288/week x 52/12 = $10368.29/month

Labour Costs -

Average hourly hour = (63.5 / 57) x $24.00/hr = $ 26.736 /hr

Social security tax = 7.65 % x $ 26.736/hr = 2.045304

State unemployment = 3.0% x $ 26.736/hr = 0.80208

Federal unemployment = 2.0% x $ 26.736/hr = 0.53472

Workers Compensation = $3.5/ $100.00 x $24.00/hr = 0.84

Public liability/property damage = $1.80/ $100.00 x $24.00/hr = 0.432

Fringe benefits = 1.75

laborer average hourly cost = $ 33.140104

laborer hourly cost = $ 33.14/hour

laborer weekly cost = $ 33.140104/hr x 53.0 hr/week = $ 1756.425512 /week

laborer monthly cost = $ 1756.425512/week x 52/12 = $ 7611.17721 /month

Crew costs

Hourly cost of crew = 5 carpenters @ $ 45.14/hr + 2 laborer @ $ 33.14/hr = $ 291.98/hr

Weekly cost of crew =  5 carpenters @ 2392.68288/week + 2 laborer @ $ 1756.425512 /week = $ 15476.265424/ week

Monthly cost of crew =  5 carpenters @ $10368.29/month + 2 laborer @ $ 7611.17721 /month = $ 67063.80442/ month.