ASCP Diplomate in Laboratory Management (DLM) Practice Exam 2025 – Comprehensive All-in-One Resource for Exam Success!

The average hourly rate is determined by taking the total salary expense and dividing it by the total number of paid hours worked. This calculation provides a clear measure of how much each hour of work costs the organization based on its salary expenses. For an accurate average hourly rate, using salary expense ensures that all costs related to employee remuneration are factored in, including overtime and any other applicable wage-related expenses.

In contrast, the other options do not accurately reflect the method used for calculating the average hourly rate. For instance, calculating total paid hours divided by employees provides an average of hours worked per employee, which does not reflect the cost per hour. Similarly, dividing annual salary by working hours can yield a rate, but it may not include all relevant expenses or adjustments needed for a complete overview of hourly compensation. Lastly, taking paid hours divided by total salary is not a meaningful calculation for determining an hourly rate, as it does not properly relate salary to the number of hours worked. Thus, the correct method is to divide the total salary expense by the total paid hours to find the average hourly rate accurately.