Mathematics with Business Applications

Chapter 13:

Practice Test


1.	Headlines, Inc., a sign company, is searching for a graphic artist. The personnel department placed advertisements for a total cost of $1,236. After reviewing several résumés, they narrowed their search to three candidates whom they wanted to interview. The travel expenses for the three candidates were $134.57, $218.91, and $97.04. After the interviews, Phoebe Nevins was hired at an annual salary of $64,500. Ms. Nevins sold her home and Headlines, Inc., paid the $7,200 broker's fee. What is the total recruiting cost?
		A)	$8,886.52
		B)	$66,186.52
		C)	$72,936.00
		D)	$73,386.52


2.	Yvonne Simmons isa technical writerat ZAP Electronics withanannual salary of $72,500. The board of directorsat ZAP voted to giveall employeesa cost-of-livingadjustment of 1.5 percent,and Simmonsa merit increase of 4 percent. What will Simmons's salary be for the upcoming year?
		A)	$73,587.50
		B)	$75,400.00
		C)	$76,487.50
		D)	$76,531.00


3.	The personnel department of Credit Counselors is preparingannual reports on employee benefits. Vincent Tucker's grossannual salary is $36,500. His benefits total $10,079.71. Vincent's totalannual benefitsare what percent of hisannual salary?
		A)	2.7%
		B)	3.0%
		C)	27.6%
		D)	30.0%


4.	Mary Chapman had been workingat First Savings for 18 years when she became permanently disabledand could not continue to work. She was 50 years oldand had planned to retire in 12 years. Her finalaverage salary was $34,500. First Savings' rate of benefits is 2 percent. What is Chapman's monthly disability benefit?
		A)	$690.00
		B)	$862.50
		C)	$1,035.00
		D)	$1,725.00


5.	The base rate for workers compensation for roofers in one state is $14.67 per $100 paid to employees. The total monthly payroll for Mile High Roofing is $135,000. What is the monthly premium for workers compensation insurance?
		A)	$1,467.00
		B)	$1,980.45
		C)	$14,670.00
		D)	$19,804.50


6.	Mid-Valley Radiology will reimburse Judy Wyman forattendinga 2-day training class on new ultra-sound equipment. Wyman drove to the classand will receive $0.32 per mile for the 420 miles round-trip. Inaddition, the conference registration fee is $145, the hotel is $125 for one night,and her mealallowance is $45 for each day. What is the total cost of sending Wyman to the conference?
		A)	$360.00
		B)	$494.40
		C)	$628.80
		D)	$718.80


7.	Washington School sent 3 teachers toa 2-day conference to learnabout the new state curriculum. The teachers were paid their regular salaries whileattending the conference. Their combined salariesamounted to $600 per day. The teachers needed substitutes in theirabsence. The substitutes each received $60a day. The conference cost was $125 per teacher. What was the total cost to Washington School for the conference?
		A)	$825
		B)	$1,650
		C)	$1,935
		D)	$2,210


8.	The personnel department ofAnna's Wholesale Bakery is preparingannual reports on employee benefits. Hannah Prosser's grossannual salary is $29,500. Her benefits total $8,673.25. Prosser's totalannual benefitsare what percent of herannual salary?
		A)	29%
		B)	34%
		C)	66%
		D)	71%


9.	Bruce Connors has contributed to Social Security for the past 17 years. He becomes disabled while working. Hisannual salaryat the time of his injury was $32,500. If he qualifies for SSI, what will his monthly disability benefit be for himand his wife?
		A)	$325
		B)	$531
		C)	$796
		D)	$3,250


10.	Anna's Wholesale Bakery has 15 employees. The company must paya state unemployment tax (SUTA) of 5.4 percent on the first $7,000 of each employee’sannual wage. Compute the state unemployment tax on Hannah Prosser's grossannual salary of $29,500.
		A)	$56
		B)	$378
		C)	$1,593
		D)	$3,780