Find the labor burden and burdened hourly wage rate from the given data: Craft =

Question

Find the labor burden and burdened hourly wage rate from the given data: Craft = Carpenter Wage rate = SR 16 per hour Hours worked = 50 hours per week for 21 weeks and 40 hours per week for 28 weeks Paid vacation, holidays, and sick leave = 3 weeks at 40 hours per weeks Overtime = Time-and-a-half for any hours over 40 per week Utilities allowance = SR 100 per month Annual bonus = SR 3,500 1. Social security = 6.2% on the first SR 40,000 of wage 2. Medicare = 1.45% of all wage 3. Federal Unemployment Tax = 0.8% on the first SR 36,000 of wage 4. Provincial Unemployment Tax = 4.5% on the first SR 40,000 of wages 5. Workers compensation insurance = SR 7.25 per SR 100 of wages 6. General liability insurance 0.75% of wages 7. Health insurance (company's portion) = SR 650 per month per employee 8. Retirement = SR 0.75 per SR 1 contributed by the employee on 6% of the employee's wages.

Explanation / Answer

Calculation of Total Labour Burden

Calculation Of Total Working Hours

Total Hours= 50Hours*21weeks+40Hours*28weeks=1050+1120=2170hours

(-) Paid Holidays=3weeks at 40hours per week=40hours*3weeks=120hours

Total Working Hours =2050hours

Hourly wage Rate= Total Labour Burden/Total Working Hours

=62,350/2050hours

=30.41 per hour

Particulars Working Amount Wages 50Hrs*21weeks*16+40hours*28weeks*16 34,720 Overtime (50-40hr) 10hour*21weeks=210hours*24(16+8) 5,040 Total Wages Wages+ overtime 39,760 Utilities Allowance 100Per monthj*12months 1,200 Annual Bonus 3,500 Social Security 6.2%*39,760 2,465 Medicare 1.45%39760 577 Federal Unemployment Tax 0.8%*36000 288 Provincial Unemployment Tax 4.5%*39760 1,789 Workers Compensation Insurance 7.25/100*39760 2,883 General Liability Insurance 0.75%*39760 298 Health Insurance 650*12 7,800 Retirement 6%*39760=2386*0.75 1,790 Total 62,350

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