Lucy works 40 hours a week in the health information management department at Masters Hospital at a rate of $22/hour. Additionally, she receives benefits that are valued at 35% of her base salary. Calculate the labor cost and the compensation.
A) $43,760 and $13,104
B) $37,104 and $50,544
C) $45,760 and $13,104
D) $16,016 and $45,760

Question

Quizplus · Accepted Answer

40 hrs. x 52 weeks = 2,080 hrs. a year. 2,080 hrs. x $22.00 hourly rate = $45,760 base salary (labor cost)
45,760 x 0.35% = $16,016 compensation. $16,016 + $45,760 = $61,776 total compensation.

Lucy Works 40 Hours a Week in the Health Information