Mr. Polehoke is the department manager for occupational therapy services at GrandStand Hospital in Indianapolis, IN. The human resources and finance departments help him by estimating the number of productive and nonproductive hours and FTEs, as well the total annual wages, taxes, insurance, and benefits to be paid out. Assume the following regarding these OTs:
• They make $35 per hour
• 50,000 patient procedures are predicted for the upcoming year among all OTs
• One FTE working 40 hours/week = 2,080 hours
• Average procedure takes 1 hour
• 50,000 procedures X 1 hours/procedure = 50,000 hours patient services among all OTs
• Assume total productive hours = total regular hours, because these are exempt positions
• Benefits, payroll taxes, etc., are 35% of total wages Time annually per FTE: Personal time: 10 Sick time: 20 Vacation: 30 Holiday: 20 Miscellaneous administrative work: 30 What are the total salaries plus wages, benefits, etc., paid out?
a. $2,721,500 b. $2,362,500 c. $2,421,100 d. $2,321,500 e. $2,311,500.