Florida General Contractor Practice Exam

If a non-exempt employee earns $12.25 per hour and works a total of 46 hours in a week, what is the employer’s average hourly labor cost after adding 12% for taxes?

1. $13.24

2. $14.20

3. $12.25

4. $15.10

The correct answer is: $13.24

To determine the employer's average hourly labor cost for a non-exempt employee, you need to consider both the employee's earnings and the additional costs associated with employment, such as taxes. First, calculate the total earnings for the 46 hours worked. Since the employee is non-exempt and worked over 40 hours, they receive overtime pay for those extra hours. The standard overtime rate is typically 1.5 times the regular hourly rate. 1. Calculate the regular pay for the first 40 hours: - 40 hours x $12.25/hour = $490.00 2. Calculate the overtime pay for the additional 6 hours: - Overtime rate = $12.25 x 1.5 = $18.375 - Overtime pay = 6 hours x $18.375/hour = $110.25 3. Add the regular pay and the overtime pay to find the total earnings for the week: - Total earnings = $490.00 + $110.25 = $600.25 Next, calculate the employer's cost by adding the 12% tax to the total earnings: 1. Determine the total cost including taxes: - Tax amount = $600.25