Base wages are $48,000 and employer payroll burden is estimated at 22 percent. What total labor cost should be budgeted?
Correct Answer
C) $58,560.
Payroll burden is $48,000 x 22 percent = $10,560. Total budgeted labor cost is $58,560.
Why This Is the Correct Answer
Payroll burden is $48,000 x 22 percent = $10,560. Total budgeted labor cost is $58,560.
Why the Other Options Are Wrong
Option A: $52,800.
$52,800. is below the supported result for payroll burden calculation; it likely skips a premium-pay or employer-cost component.
Option B: $56,160.
$56,160. is below the supported result for payroll burden calculation; it likely skips a premium-pay or employer-cost component.
Option D: $69,120.
$69,120. is above the supported result for payroll burden calculation; it likely pays the wrong premium tier or counts the same hours twice.
Memory Technique
Estimating Labor payroll: time, premium, reimbursement, proof in separate buckets.
Reference Hint
Study anchor (closed-book): memorize Payroll burden calculation from CSLB Law and Business Study Guide; California Employment Development. / California EDD payroll tax and employer burden concepts; know the rule or calculation trigger without relying on exam-room lookup.
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