Floyd’s Transport employs three drivers who are paid $16 per hour for regular time and $24 for overtime. A single pickup and delivery requires, on average, one hour of driver time. Drivers are paid for a 40-hour week because they must be on call all day. One driver stands by for after-hour deliveries. Analyze the labor costs for one week in which the company made 105 daytime deliveries and 12 after-hour deliveries. The payroll for drivers for that week was $2,280. The employees worked 120 hours of regular time and 15 hours of overtime.
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