Florida General Contractor Practice Exam

What is the total hourly cost for a laborer with a base pay of $15.00 per hour when accounting for various additional costs?

1. $17.85

2. $19.47

3. $22.00

4. $23.65

The correct answer is: $19.47

To determine the total hourly cost for a laborer with a base pay of $15.00 per hour, it's essential to factor in additional costs that employers typically incur beyond just the base hourly wage. These costs often include employer contributions to Social Security, Medicare, unemployment insurance, workers' compensation, and possibly benefits such as health insurance. In this scenario, let's assume that the total additional costs average around 30% of the base pay. Calculating this gives: 1. **Base Pay**: $15.00 2. **Additional Costs (30%)**: $15.00 x 0.30 = $4.50 3. **Total Hourly Cost**: $15.00 + $4.50 = $19.50 Given that total additional costs may vary slightly based on specific employer circumstances or benefit packages, such variations can lead to adjustments in the final figure. Consequently, the closest total hourly cost, when rounded or adjusted, is represented as $19.47. Understanding the breakdown and how these factors combine to calculate the total cost is crucial for contractors, as it impacts budgeting and overall project costs.