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How to Calculate Loaded Hourly Rate

Posted: Wed Jan 10, 2018 1:11 pm
by riyadhmuhammed
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

Re: How to Calculate Loaded Hourly Rate

Posted: Wed Jan 10, 2018 8:59 pm
by nazrulq
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!

Re: How to Calculate Loaded Hourly Rate

Posted: Thu Jan 11, 2018 3:45 am
by ajaynit
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