Question

interpretive dimensions provides sign language interpreters for major business conferences. interpreters are paid an hourly rate of \\$110. fringe benefits are estimated to be 30\\% of wages, and employment taxes amount to 10\\% of wages.

calculate the standard hourly rate for an interpreter. (round answer to 2 decimal places, e.g. 52.75.)

standard rate per hour: \\$

Explanation:

🆕 New Concept Discovered: Standard Labor Rate Calculation
The total cost of a labor hour includes wages, benefits, and taxes.

Step 1: Identify the components of the standard hourly rate

To find the total standard hourly rate, we must add the base wage rate to any additional hourly costs associated with employment, such as fringe benefits and employment taxes.

• Base wage rate: \( \$110.00 \) per hour
• Fringe benefits: \( 30\% \) of the base wage rate
• Employment taxes: \( 10\% \) of the base wage rate

Step 2: Calculate the additional hourly costs

Calculate the cost of fringe benefits and employment taxes per hour:

$$ \text{Fringe benefits} = \$110.00 \times 0.30 = \$33.00 $$

$$ \text{Employment taxes} = \$110.00 \times 0.10 = \$11.00 $$

Step 3: Sum the components to find the total standard rate

Add the base wage, fringe benefits, and employment taxes together:

$$ \text{Standard rate per hour} = \$110.00 + \$33.00 + \$11.00 = \$154.00 $$

Answer:

154.00