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: $37,440.
$37,440 subtracts the 10,560 from the first step instead of adding it. The correct calculation is 48,000 x 0.22 = 10,560; 48,000 + 10,560 = 58,560.
Option B: $48,000.
$48,000 leaves out the 10,560 from the first step. The correct calculation is 48,000 x 0.22 = 10,560; 48,000 + 10,560 = 58,560.
Option D: $10,560.
$10,560 stops at the first result and never finishes the calculation. The correct calculation is 48,000 x 0.22 = 10,560; 48,000 + 10,560 = 58,560.
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.
Independent practice; verify any reference hint against the edition and category permitted for your booking. Official exam and reference-list sources →
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