Section C: Calculating Costs

You may use the space on this sheet to make your calculations. Note: I will grant partial credit for the different parts of this question you calculate correctly (even if you do not arrive at the correct answer), so please show your work.

Use the following information to calculate the total cost of absenteeism per employee.

Total number of employees: 1100

Total hours of absence: 46,590

Occupational Group	Average % of Absenteeism	Average Hourly Wage
Blue collar	0.55	$16.15
Clerical	0.35	$18.50
Management & Professional	0.10	$41.25

Cost of benefits is about 35% of hourly wage

Total number of supervisory hours lost to absenteeism: 14,250

Average hourly supervisor salary: $26.58

Yearly cost of substitute employees: $285,000

Yearly cost of reduced quality/quantity: $709,000

The employee cost of absenteeism is: ________________

The supervisor cost of absenteeism is: ________________

The total cost of absenteeism is: _____________________

The total cost of absenteeism per employee is: _______________