Question

Calculate the salary budget for the fiscal year ending June 30, 20X8. Budgeted volume is planned to be 108,000 procedures. Each FTE can do 8,500 units a year. A pay raise will be given to all staff on May 1st of each year at a rate of 10 percent. The July 1, 20X7 rate of pay for new hires is set at $34.00/hour regardless of hire date. The following are the current staff with FTE values and hourly rates of pay as of October 1, 20X6:

Employee/FTE value/Pay rate

Anderson/0.5/ $34.50

Baker/1.0/$31.25

Carson/1.0/29.35

Davis/1.0/32.65

Evans/ 0.5/24.75

Flinton/0.5/36.20

Gates/1.0/31.00

Hayes/0.5/29.00

The following information may or may not be needed to solve this problem. In examining the payroll and personnel records of your department, you have determined that productive time is 85 percent of total paid time. New staff cannot be hired in less that half time FTE increments (e.g., if you calculate a need for 12.3 additional, new FTEs, 12.5 FTEs must be hired).

Answer 1

	FTE Value	Pay rate on October 16	Pay rate per hour	Units	Total pay	Pay rate per hour	Units	Total pay	Units	Total Salary Budget
					In lacs			In lacs		In lacs
			July to April	July to April	July to April	May to June	May to June	May to June	July to June	July to June
Anderson	0.50	34.50	37.95	7083.33	3268.76	41.75	1416.67	144.30	8500.00	3413.06
Baker	1.00	31.25	34.38	7083.33	5921.67	37.81	1416.67	261.41	8500.00	6183.08
Carson	1.00	29.35	32.29	7083.33	5561.63	35.51	1416.67	245.52	8500.00	5807.15
Davis	1.00	32.65	35.92	7083.33	6186.96	39.51	1416.67	273.12	8500.00	6460.08
Evans	0.50	24.75	27.23	7083.33	2344.98	29.95	1416.67	103.52	8500.00	2448.50
Flinton	0.50	36.20	39.82	7083.33	3429.83	43.80	1416.67	151.41	8500.00	3581.24
Gates	1.00	31.00	34.10	7083.33	5874.29	37.51	1416.67	259.32	8500.00	6133.61
Hayes	0.50	29.00	31.90	7083.33	2747.65	35.09	1416.67	121.29	8500.00	2868.95
New addition	1.00		34.00	7083.33	5857.07	37.40	1416.67	258.56	8500.00	6115.63
New addition	1.00		34.00	7083.33	5857.07	37.40	1416.67	258.56	8500.00	6115.63
New addition	1.00		34.00	7083.33	5857.07	37.40	1416.67	258.56	8500.00	6115.63
New addition	1.00		34.00	7083.33	5857.07	37.40	1416.67	258.56	8500.00	6115.63
New addition	1.00		34.00	6000.00	4961.28	37.40		0.00	6000.00	4961.28
Total				91000.00	63725.32		17000.00	2594.12	108000.00	66319.44