A direct labor payroll is $22,000. The employer's added payroll burden for estimating is 18 percent. What total labor cost should be used?
Correct Answer
A) $25,960.
Payroll burden is added to direct labor: $22,000 x 18 percent = $3,960; total labor cost is $25,960.
Why This Is the Correct Answer
Payroll burden is added to direct labor: $22,000 x 18 percent = $3,960; total labor cost is $25,960.
Why the Other Options Are Wrong
Option B: $22,000.
$22,000. is below the supported result for payroll burden; it likely skips a premium-pay or employer-cost component.
Option C: $18,040.
$18,040. is below the supported result for payroll burden; it likely skips a premium-pay or employer-cost component.
Option D: $39,600.
$39,600. is above the supported result for payroll burden; it likely pays the wrong premium tier or counts the same hours twice.
Memory Technique
Payroll Burden ladder for Building Labor: hours climb before dollars add up.
Reference Hint
Study anchor (closed-book): memorize Payroll burden from CSLB Law and Business Study Guide; CSLB 2026 Law Book; CSLB Law and. / CSLB Business Finances; California payroll tax and employer cost guidance; know the rule or calculation trigger without relying on exam-room lookup.
More Law & Business Questions
A Fresno homeowner wants a $725 cabinet repair and trim adjustment. Which contract step best matches CA home improvement requirements?
A project has $6,500 retainage withheld. The owner releases 60 percent of retainage at substantial completion. How much cash is released?
Cash is $52,500 and monthly burn is $17,500. How many months of runway are available?
A supplier offers 1.5 percent early-pay discount on a $22,000 invoice. What is the discount?
A balance sheet lists assets of $310,000 and liabilities of $185,000. What is owner's equity?
A job is estimated to cost $135,000. What price gives a 25 percent gross margin?
A customer invoice of $4,000 has a stated late charge of 1.5 percent. What late charge is added?
A bid has direct labor of $18,000, materials of $12,500, and equipment rental of $3,500. If the contractor adds 20 percent markup on direct cost, what is the bid price?
A contractor wants a 25 percent gross margin on a job with estimated cost of $60,000. What selling price gives that margin?
A completed project sold for $150,000 and had total cost of $126,000. What gross margin percentage did the project earn?