The compensation survey showed an average hourly rate of $23 for total compensation. Of this amount, wages are $16 per hour and benefits are $7 per hour. In comparison, Butcher Enterprises spends an average hourly rate of $19 for total compensation. Of this amount, 70 percent is allocated for wages.
1-7. On an average hourly basis, how much does Butcher Enterprises spend on wages and benefits, respectively, in dollars?
Answer:
Hourly wage = 0.7 * $19 = $13.3
Hourly benefit = 0.3 * $19 =$5.7
Explanation:
Butcher enterprises spends average hourly rate of total compensation = $ 19
Allocation for hourly wage = 70%
So therefore;
Hourly wage = 0.7 * $19 = $13.3
Allocation for hourly benefit = 30%
So therefore;
Hourly benefit = 0.3 * $19 =$5.7
Answer:
wages: $13.3
benefits: $5.7
Explanation:
In the problem above, the butcher enterprises usually budget an average hourly rate of approximately $19 as the total package for each employee. In addition, 70% of this allocation is for wages while the remaining 30% is for benefits. Therefore, we can deduce the hourly rate as follow:
wages: 0.7*$19 = $13.3
benefits: 0.3*$19 = $5.7
