LABOR COST FOR STRATEGY# 1
• Calculate labor costs under the specified conditions in which no overtime wage and no outsourcing.
• Condition:
– Daily capacity is 50 piece/day
– 8 hours working time per one staff
– Standard production time = 1.6 hours per piece
• Capacity per one staff = 8/1.6 = 5 piece/day. Then, if 50 piece / day is needed as planned, 10 staffs are required.