Question

Staley company has 30 order operators with associated costs of $1,000,000 per year. Staley calculated that each operator worked about 2,000 hours per year. Allowing for time off, each operator provided about 1,600 or productive work per year. What is the rate per hour for each order entry employee?

Answer 1

Answer:

$20.833

Explanation:

Given that,

Number of order operators = 30

Cost associated with these order = $1,000,000 per year

Each operator worked = 2,000 hours per year

Productive work provided by each operator = 1,600 per year

Cost for each order = Total Cost associated ÷ Number of order operators

                                 = $1,000,000 ÷ 30

                                 = $33,333.3333

Rate per hour for each order entry employee:

= Cost for each order ÷ Productive work provided by each operator

= $33,333.3333 ÷ 1,600

= $20.833