## How to Calculate Loaded Hourly Rate

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riyadhmuhammed
Posts: 8
Joined: Wed Jan 25, 2017 9:18 am

### How to Calculate Loaded Hourly Rate

The wage rate of the worker is \$20.00, Fringe Benefit costs are 10 % of the wages and the overhead costs are 50 % of this total cost. What is the Loaded hourly rate for this worker ?

A. \$32
B.\$31
C.\$34
D.\$33

Answer . D

Please advise
nazrulq
Contributor
Posts: 270
Joined: Sun Feb 26, 2017 6:06 am
Location: Canada

### Re: How to Calculate Loaded Hourly Rate

Wage of the worker = \$ 20/ hour
Fringe Benefit = 10% of 20 = \$2 /hour
Over Head 50% of 20 =\$ 10 /hour
Loaded hourly rate = \$ ( 20+2+10) = \$ 32
Option A Suppose to be right choice in my point of view!
ajaynit
Contributor
Posts: 116
Joined: Thu Dec 07, 2017 5:35 pm

### Re: How to Calculate Loaded Hourly Rate

one of the tricky part of this question is "overhead costs are 50 % of this total cost"

My calculation:

Wage of the worker = \$ 20/ hour
Fringe Benefit = 10% of 20 = \$2 /hour
Over Head 50% of total cost i.e 50% of (20+2) =\$ 11 /hour
Loaded hourly rate = \$ ( 20+2+11) = \$ 33

Answer D.

Note:I could arrive to this calculation because answer was known to me otherwise i am pretty sure i wouldn't have been able to do so

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