total overtime wages
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Consider the following aggregate production planning problem:
January February
Dema Demand 100 units 120 units
Produ Production plan 110 units 110 units
Numb Number of working days per month 20 20
Additional Data:
Current work force 10 workers
Numb Number of working hours per day 8
Numb Number of hours required per unit 16
Overti overtime rate $20.00 per hour
Invent Inventory carrying cost $10.00/unit/month
No hiring or layoff is allowed. Also no changes are to be made in the production plan given above.
Total overtime wages for January and February will be:
A. $100
B. $1,100
C. $1,600
D. $3,200
E. $6,400
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The total overtime wages are exemplified in this tutorial.
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Total number of hours required for production
(110 units)(16 hrs per unit) + (110 units)(16 hrs per unit) ...
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