the anwer must be in amont per hr 005 100 points Determine

the anwer must be in $ amont per hr.

005 10.0 points Determine the hourly labor cost for a steel- worker who earns $39/hour as wages and has the following benefits: Fringes: $5/houn Workers comp: $15 per $100 of wages Insurance: S7 per S100 of wages FICA: 6% of wages Unemployment: 5% of wages Subsistence: $32/day The steelworker works 5, 8-hour shifts per week.

Solution

Let us determine the weekly total wage and then divide that by number of hours worked

wage = $39/hr

fringes= $5/hr

Workers compensation=$15 per $100 of wages

FICA = 6% of wages

unemployment=5% of wages

Subsistence = $32/day

totakl number of hours a worker works in a week=5*8=40 hrs

total wage = $39*40=$1560

fringes= $5*40=$200

workers compensation= $15*1560/100=$234

Insurance=$7*1560/100=$109.2

FICA=0.06*$1560=$93.6

Unemployment = 0.05*$1560=$78

Subsistnece = $32/day=$32*5=$160

Total cost per week = $1560+$200+$234+$109.2+$93.6+$78+$160 = $2434.8

total labor cost per hour = $2434.8/40=$60.87