Question

The budget for the year is based on 30 FTEs at an average of $15/hour. The labor budget is:

a) $450,000
b) $225,000
c) $300,000
d) $675,000

Answer 1

The calculated labor budget, based on 2,080 work hours per year, a $15/hour average wage, and 30 FTEs, is $936,000. The figure is not among the provided options, suggesting a potential error in the question itself.

Step-by-step explanation:

The student's question is about calculating the total labor budget for a year based on the number of Full-Time Equivalents (FTEs) and an average hourly wage. To calculate the labor budget, we need to multiply the total hours worked per year by the average wage per hour and then by the number of FTEs.

Here's the calculation:

• Number of work hours in a year = 2,080 hours (assuming a 40-hour work week)
• Average wage = $15/hour
• Number of FTEs = 30

The labor budget is therefore:

2,080 hours/year * $15/hour * 30 FTEs = $936,000/year

However, this answer is not listed in the options provided by the student, which indicates that the question might have been formulated incorrectly or contains a typo.