Calculating the cost of Full-Time and Part-Time Employment In your role as a compensation analyst, you...

Calculating the cost of Full-Time and Part-Time Employment

In your role as a compensation analyst, you have been assigned to calculate and compare the estimated costs of hiring full-time and part-time employees in anticipation of staffing a project. It will take 100,000 work hours to complete the project, and the project must be completed within a 5-workweek period. The workweek runs Monday through Friday, within the daily hours of 8 am to 4 pm. Full-time workers provide 40 hours of weekly service. Part-time workers provide 20 hours of weekly service. Assume that the hourly wage rate for full-time workers is $20, and the rage is $12 for part-time workers. Both categories of workers perform the same sets of tasks. also , assume that costs of benefits equal the amounts displayed in Table 12-2.

Questions:

12-9. Based exclusively on employing full time workers, (a) How many are needed to complete the project? (b) What is the estimated total cost of wages and benefits?

12-10. Based exclusively on employing part-time workers, (a) How many are needed to complete the project? (b) What is the estimated total cost of wages and benefits?

12-11. Assume that your company has asked you to calculate the cost of staffing the project with a combination of full- and part-time workers? You’ve already hired 15 full-time workers. (a) How many part-time workers should you hire? (b) What is the total cost of wages and benefits based on employing this mix of full- and part-time workers?

Solutions

Expert Solution


Total work hours required	100,000

Time in week	5
Full time hours per week	40
Toal full time hours per employee	200

Time in week	5
part time hours per week	20
Toal full time hours per employee	100


Full time employee only
Employee needed	100000/200
Employee needed	500.00

Total cost	100000*20
Total cost	2,000,000

Part time employee only
Employee needed	100000/100
Employee needed	1000

Total cost	100000*12
Total cost	1,200,000

Mix of full time and Part time employee only

Full time employee	15
Hours from full time	15*200
Hours from full time	3,000.00
Rest work	100000-3000
Rest work	97000
Employee needed	97000/100
Employee needed	970

Total cost-full time	3000*20
Total cost-full time	60,000.00

Total cost-Part time	97000*12
Total cost-full time	1,164,000.00

Total Cost	1,224,000.00

jeff jeffy answered 1 year ago

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