Let's solve the problem step by step: ### **Step 1: Sum the Total Annual Volume** Add up the monthly volumes to get the annual volume. \[ \text{Total Annual Volume} = 600 + 500 + 400 + 300 + 700 + 800 + 350 + 450 + 390 + 462 + 480 + 530 \] \[ \text{Total Annual Volume} = 5,962 \text{ units} \] --- ### **Step 2: Calculate Number of Shifts Needed** The machine capacity is 3,826 units per shift. \[ \text{Number of Shifts Needed} = \frac{\text{Total Annual Volume}}{\text{Machine Capacity per Shift}} \] \[ \text{Number of Shifts Needed} = \frac{5,962}{3,826} = 1.559 \text{ shifts} \] Since you can't have a fraction of a shift, **round up to 2 shifts** for the year. --- ### **Step 3: Calculate Total Hours Worked** Each shift is 8 hours. \[ \text{Total Hours Worked} = \text{Number of Shifts} \times 8 \] \[ \text{Total Hours Worked} = 2 \times 8 = 16 \text{ hours} \] --- ### **Step 4: Calculate Labor Cost (Including Fringe Benefits)** Hourly wage = $10/hr Fringe benefits = 20% \[ \text{Total Pay Rate} = \$10 + (20\% \times \$10) = \$10 + \$2 = \$12/\text{hr} \] \[ \text{Annual Cost} = \text{Total Hours Worked} \times \text{Total Pay Rate} \] \[ \text{Annual Cost} = 16 \times 12 = \$192 \] --- ## **Final Answer** \[ \boxed{\$192} \] This is the **annual cost for the budget of this position**.

The annual cost for the position is calculated based on the total machine capacity required to meet the production volume, multiplied by the combined hourly wage and fringe benefits. This approach ensures the labor budget aligns with the total units produced over the year.