Each certified instructor puts in 480 hours per quarter regular time and can work an additional 120 hours overtime. Regular-time wages and benefits c

College Accounting (Book Only): A Career Approach
12th Edition
ISBN:9781305084087
Author:Cathy J. Scott
Publisher:Cathy J. Scott
Chapter7: Employee Earnings And Deductions
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Problem 1E
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Each certified instructor puts in 480 hours per quarter regular time and can work an additional 120 hours overtime. Regular-time wages and benefits cost the ABC Golf club Rs.7200 per employee per quarter for regular time worked up to 480 hours, with an overtime cost of Rs. 20 per hour. Unused regular time for certified instructors is paid at Rs. 15 per hour. There is no cost for unused overtime capacity. The cost of hiring, training, and certifying a new employee is Rs. 10,000. Layoff costs are Rs.4000 per employee. Currently, eight employees work in this capacity. Use a chase strategy that varies the work-force level without using overtime or undertime. What is the total cost of this plan?

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