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i am planning a 8 week temporary work program

Accounting Jan 19, 2021

i am planning a 8 week temporary work program. my budget is set for $130,000. I am hiring 34 people. these people will work 40 hours a week for 8 weeks straight.

 

18 of the people will get paid $10.00 an hour.

13 of the people will get paid $9.00 an hour

3 of the people will get paid $15.00 an hour

 

The only thing they will have to pay in is for taxes at Oklahomas rate.

 

Please help me find how close i am to my budget. i cant go over.

Expert Solution

Budget = $130,000 | Number of people to be hired = 34

Hours per week = 40 hours | Weeks to be worked = 8 weeks

Total hours to be worked in the program per person = Weeks * Hours per week = 40 hours * 8 weeks = 320 hours

Hourly rate for 18 of the people = $10 per hour

Cost for 18 of the people = Number of people * Hourly rate * Total hours per person = 18 * 10 * 320 = $57,600

Hourly rate for 13 of the people = $9 per hour

Cost for 13 of the people = Number of people * Hourly rate * Total hours per person = 13 * 9 * 320 = $37,440

Hourly rate for 3 of the people = $15 per hour

Cost for 3 of the people = Number of people * Hourly rate * Total hours per person = 3 * 15 * 320 = $14,400

Since taxes will be paid by hired people themselves, therefore, we will not consider taxes.

Total Amount to be paid to 34 hired people = Cost for 18 of the people + Cost for 13 of the people + Cost for 3 of the people

Total Amount to be paid to 34 hired people = $57,600 + $37,440 + $14,400

Total Amount to be paid to 34 hired people = $109,440

Since Budget is $130,000 and Amount to be paid to 34 people is $109,440, you are below Budget by $20,560.

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