Answer:
The labor cost each month this year is $53,000.
Explanation:
Step 1: Calculate the total labor cost for last year
T=C×N
where;
T=total yearly labor cost from last year
C=cost of labor for each month
N=number of months within a year
In our scenario;
T=unknown, calculation needed
C=$44,000 monthly
N=12 months
Substituting;
T=(44,000×12)=$528,000
Step 2: Calculate this year’s total labor cost
This year’s labor cost can be represented as;
Y=T+I
where;
Y=total labor cost for this year
T=previous year’s labor cost
I=increased cost from last year to this year
<pIn our scenario;
Y=unknown, calculation needed
T=$528,000
I=$108,000
Substituting;
Y=(528,000+108,000)=$636,000
Step 3: Calculate the monthly labor cost for this year
This year’s monthly labor expense= this year’s labor cost/number of months per year
where;
Monthly labor cost for this year=unknown, calculation pending
This year’s labor cost=$636,000
Months in a year=12
Substituting;
Monthly labor cost for this year=(636,000/12)=$53,000
The monthly labor expense for this year is $53,000.
