The worker classes shown in Table 3 will be used to construct the Real Estate Office in Appendix E. Given the following information, determine the burdened hourly wage rate for each worker class. Assume the workers take full advantage of the retirement benefit.

Question

What will be an ideal response?

Answer 1

Wage rate—as per Table 3

Hours worked—40 hours per week for 50 weeks

Vacation, holidays, and sick leave—80 hours per year

Social security—6.2 percent on the first $127,200 of wages

Medicare—1.45 percent of all wages

FUTA—0.6 percent on the first $7,000 of wages

SUTA—1.25 percent on the first $33,600 of wages

Worker’s compensation insurance—as per Table 3

General liability insurance—1.05 percent of wages

Health insurance (company’s portion)—$625 per month per employee

Retirement—$0.50 per $1.00 contributed by the employee on 6 percent of the employee’s wages

Table 3. Worker Classes for Real Estate Office
Worker Class Hourly Wages Workers’ Compensation Insurance
Superintendent 65.00 6.25
General Laborer 16.55 8.42
Cement Mason 21.65 11.54
Mason 27.20 9.20
Rough Carpenter 24.17 10.66
Finish Carpenter 28.24 6.95
Roofer 19.35 12.21
Plumber 33.25 8.25
HVAC installer 43.50 8.45
Electrician 31.75 8.60
Equipment Operator 21.25 6.25

Labor rate calculations are found in Real Estate Office.xlsm on the instructor’s website.