Question

Construction labor is budgeted on the basis of 52 weeks per year. Construction labor is budgeted on the basis of 40 hours per work week (Assuming overtime premiums) A contractor employs his labor force for the full year of 1,676 hours with a company policy that recognizes the following: 5 paid holidays per year.- 103 hours of paid leave per year, per employee. For estimating purposes what are standard costs/hours for how many work hours are available for productive work on the jobsite per quarter/employee?

Answer 1

Number of weeks	52	weeks
Number of days in a year (52 weeks X 5 days (40 hours /8 hours a day	260	days
less : Holidays	5	days
no of days available for production	255	(260-5)
Hour per day	8	hours
no of standard hours available for production per year per employee	2040	Hours	255 days X 8 hours a day
no of standard hours available for production per quarter per employee	510	Hours	2040 hour a year / 4 quarters a year
The standard hours available for productive work are 2040 hours per year per employee and for per quarter per employee is 510 hours
while considering the standard hours available production we should eliminate the paid holidays available
paid leave 103 hour is the part of the standard production hours
it is assumed that standard hours working per day is 8 hours
total working hours are 260 days
no of days available for production is 255 day of which multiplied with 8 hours a day we will arrive the 2040 hours