Given the following infonnation, detennine the burdened hourly wage rate for a c
ID: 2772485 • Letter: G
Question
Given the following infonnation, detennine the burdened hourly wage rate for a carpenter. Assume the carpenters take full advantage of the retirement benefit.
Wage rate-$23.00 per hour Hours worked-45 hours per week for 30 weeks, and 40 hours per week for 20 weeks
Vacation, holidays, and sick leave-Two weeks at 40 hours per week
OvertimeTime-and-a-half for any hours over 40 per week
Gas allowance-$150 per month
Annual bonus-$300 Social Security-6.2 percent on the first $106,800 of wages
Medicare1.45 percent of all wages
FUTA-0.8 percent on the first $7,000 of wages
SUTA-5.8 percent on the first $10,000 of wages
Worker's compensation insurance-$12.25 per $100.00 of wages
General liability insurance-0.55 percent of wages
Health insurance (company's portion)-$450 per month per employee
Retirement-$0.50 per $1.00 contributed by the employee on 6 percent of the employee's wages
Explanation / Answer
Solution.
The formula for calculating labor burden is:
Labor burden cost / Payroll cost. = $20,231.5 / $49,450 = 40.91%
Calculation of Labor burden cost :-
Wage = $49,450
45 hours per week for 30 weeks = 1,350 hour x Wage rate-$23.00 per hour = $31,050
40 hours per week for 20 weeks = 800 hour x Wage rate-$23.00 per hour = $18,400
Total = $49,450
2. Vacation, holidays, and sick leave = 80 hour x $23 = $1,840
3. OvertimeTime = 5 hours x 30 weeks / 2 x $23.00 per hour = $1,725
4. Gas allowance- = $150 per month x 12 = $1,800
5. Annual bonus = $300
6. Medicare1.45 percent of all wages = $49,450 x 1.45 percent = $717
7. FUTA-0.8 percent on the first $7,000 of wages = $7,000 x 0.8 percent = $56
8. SUTA-5.8 percent on the first $10,000 of wages = $10,000 x 5.8 percen = $580
9. Worker's compensation insurance-$12.25 per $100.00 of wages = $49,450 / 100
= $6,058
10. General liability insurance-0.55 percent of wages = $49,450 x 0.55 = $272
11.Health insurance (company's portion)-$450 per month per employee = $450 x 12 = $5,400
12. Retirement = $0.50 per $1.00 contributed
$49,450 x 6% = $2,967 x .50 = $1,483.50
Total labour burden cost = ($1,840+$1,725 +$1,800+$300+$717+$56+$580+$6,058+$272+$5,400+$1,483.50)
= $20,231.5
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.