There are eight employees in the accounts receivable department. Four work 40 hours a week, and four work 20 hours a week. How many FTEs are in this department?

Question

Quizplus · Accepted Answer

FTE stands for full-time equivalent, which is a measure of an employee's workload. A full-time employee typically works 40 hours per week, so to calculate the FTEs of the employees in the accounts receivable department, we need to convert the part-time employees' hours into full-time equivalents. The total number of hours worked by all employees in the department is:

4 x 40 (full-time employees) + 4 x 20 (part-time employees) = 240

To convert the part-time employees' hours to full-time equivalents, we divide their total hours by the number of hours worked by a full-time employee:

4 x 20 / 40 (hours worked by a full-time employee) = 2

So the total FTEs in the accounts receivable department are:

4 (full-time employees) + 2 (part-time employees converted to FTEs) = 6.

There Are Eight Employees in the Accounts Receivable Department