Question

Langston Hughes earns an annual salary of $76,700.00 as Chief Financial Officer of R.L. Stevenson Enterprise Industries, Inc. His benefits include a 4-week vacation annually; 8 holidays per year, monthly health insurance premium of $225.00, a 30-day sick leave holiday, Social Security of 6.2% of salary, and Medicare of 1.45% of salary. Find Langston's rate of benefits.

a) $11,255.40
b) $10,100.25
c) $9,870.15
d) $12,500.80

Answer 1

Langston Hughes's quantifiable benefits include health insurance, Social Security, and Medicare, totaling $8,567.55. This does not match any of the provided answer choices, likely due to missing information on the value of vacation and sick leave.

Step-by-step explanation:

To calculate Langston Hughes's rate of benefits, we need to consider all the benefits provided by R.L. Stevenson Enterprise Industries, Inc. beyond his base salary. We will determine the monetary value of each benefit and add them to find the total rate of benefits.

Firstly, Langston's annual health insurance premium is paid monthly at $225.00, which amounts to $225.00 * 12 = $2,700.00 annually.

For Social Security at 6.2% of his salary: $76,700.00 * 0.062 = $4,755.40.

For Medicare at 1.45% of his salary: $76,700.00 * 0.0145 = $1,112.15.

We won't assign a monetary value to the vacation, holidays, and sick leave since these are typically included in a salaried position and not paid separately.

Adding up the quantifiable benefits: $2,700.00 for health insurance + $4,755.40 for Social Security + $1,112.15 for Medicare gives us a total benefits rate of $8,567.55.

This amount does not match any of the options provided in the question. Therefore, it may be necessary to consider additional details or corrections in the question or benefits calculations. Without further information on the monetary value of the vacation and sick leave, we cannot accurately match to one of the choices given.