Understanding Insurance Costs in Your Utah Contractor Exam

If an employee works 40 hours per week for 4 weeks and insurance costs $147.20 per month, what will the insurance cost per hour for the employee?

• A. $0.12
• B. $0.54
• C. $0.78
• D. $0.92

Answer: (D)

To calculate the insurance cost per hour for the employee, start by determining the total number of hours worked in 4 weeks. Since the employee works 40 hours per week, over 4 weeks, the total hours worked would be: 40 hours/week * 4 weeks = 160 hours. Next, you need to calculate the insurance cost per hour. The monthly insurance cost is given as $147.20. To find the cost per hour, divide the total insurance cost by the total hours worked: Insurance cost per hour = Total insurance cost / Total hours worked Insurance cost per hour = $147.20 / 160 hours = $0.92. This calculation shows that the correct answer is based on accurately dividing the total insurance cost for the month by the total hours worked over that month. The result of this division reflects the cost of insurance that can be allocated to each working hour, illustrating how employee expenses can be quantified in relation to their work hours.

When you're studying for the Utah Contractor Exam, the finer points of calculations like insurance costs can feel a bit overwhelming. But don’t sweat it! Let’s break this down together and make sure you grasp everything you need for that critical test. So, hold onto your hard hats, because we're diving into some practical math.

Picture this: An employee clocks in 40 hours a week. Sounds familiar, right? If we add this up over 4 weeks, we’re talking about a solid 160 hours of dedication. Now, we need to consider the insurance costs which are pegged at $147.20 per month. How does this connect? Let’s unravel that together.

First off, to find out how much that insurance costs per hour, a simple formula will serve us well. The formula is:

Insurance cost per hour = Total insurance cost / Total hours worked.

Now, plugging in our numbers, we get:

Insurance cost per hour = $147.20 / 160 hours = $0.92.

There you have it—the magic number is $0.92. Isn’t that nice? You've just dissected one of the many practical questions that can pop up in your Utah Contractor Exam. This specific calculation is not just about numbers; it tells a story about understanding workplace costs and managing budgets.

Now, this brings up a good point: why knowing these costs matter? Well, imagine you're managing a project. Knowing how much each employee's insurance contributes to overall costs helps you keep things on track and, let's face it, it can make the difference in bidding for contracts. Understanding expenses ahead of time can give you an edge in negotiations too!

So, how can we take this one step further? Perhaps think about it in terms of overhead. Your total overhead includes not only salaries but also these kinds of costs. If you're planning to establish your own contractor business in Utah, knowing how to manage these calculating skills can help keep your operations running smoothly and efficiently.

Remember that these calculations are foundational—not just for the exam, but for your future career as a contractor. Every project you work on will involve numbers like these—whether it’s for estimating costs, managing payroll, or evaluating bids.

Now, if you find yourself scratching your head over other related topics, don’t worry! The world of contracting is vast, filled with other calculations to understand, such as material costs, labor expenses, and even your profit margins. The more you familiarize yourself with these, the clearer things will become.

Here’s the thing: equations and numbers can often feel daunting, but they serve as tools to empower you in your career. So, whether you’re meticulously going over your study materials or tackling real-life project budgeting, remember that calculations like these are your allies—your stepping stones to success in the construction world.

There’s a certain satisfaction that comes from solving these types of problems. You know what I mean? It’s like solving a puzzle that leads you closer to your goal. Keep your chin up, and embrace the learning process. You’ve got this!