Final answer:
To calculate the total annual premium for the welding shop, the premiums for the four welders and the secretary are calculated separately based on their wages and rates, and then added together, resulting in a total annual premium of $15,958.
Step-by-step explanation:
The question is asking us to calculate the total annual premium for workers' compensation insurance for a small welding shop with four welders and one secretary, based on their respective wages and insurance premium rates.
First, we will calculate the premium for the welders. Since there are four welders each earning $37,000 per year, the total wages for welders is:
$37,000 x 4 = $148,000
The insurance premium per welder is $10.57 per $100 of gross wages. To find the total premium for all welders, we do:
($10.57/$100) x $148,000 = $15,643.60
Next, we'll calculate the premium for the secretary. The secretary earns $24,000 per year, and the insurance premium is $1.31 per $100 of gross wages, which gives us:
($1.31/$100) x $24,000 = $314.40
Adding the premiums for the welders and the secretary gives us the total annual premium:
$15,643.60 + $314.40 = $15,958
So, the total annual premium for the workers' compensation insurance for the welding shop is $15,958.