Question

In preparing a budget, the nurse manager needs to anticipate the cost of benefits (e.g., health, life insurance, pension and retirement plans). Based on the usual cost of benefits, how much should a nurse manager include for a total full-time salary cost of $312,000?

a. $78,000-$93,600
b. $62,400-$78,000
c. $46,800-$93,600
d. $31,200-$46,800

Answer 1

The nurse manager should include a range of $78,000 to $93,600 for the cost of benefits.

Step-by-step explanation:

When preparing a budget, the nurse manager needs to anticipate the cost of benefits, such as health, life insurance, pension, and retirement plans. The usual cost of benefits is typically a percentage of the total salary cost. According to industry standards, the cost of benefits for a full-time employee is usually around 25-30% of their salary.

In this case, the total full-time salary cost is $312,000. To calculate the cost of benefits, we can use the range of 25-30%.

$312,000 * 0.25 = $78,000

$312,000 * 0.30 = $93,600

Therefore, the nurse manager should include a range of $78,000 to $93,600 for the cost of benefits.