Question

You must give an estimate to service an automobile. The hourly rate for labor is $7.50. You estimate the job will take 2 1/2 hours. The overhead rate at your shop is 85%. You also figure that parts to be used total $25.50 retail. How much is the job estimate (to the nearest cent)?
Estimate of total cost =

Answer 1

Answer:
job estimate = $60.1875

Explanation:
1- labor payment:
The hourly rate is $7.5 and the job will take around 2.5 hours. This means that:
labor payment = 7.2 * 2.5 = $18.75

2- Overhead value:
The overhead value is 85%.
This means that:
its cost would be = 85% * labor payment 
                           = 0.85 * 18.75 
                           = $15.9375

3- Retail cost:
We are given that the retail cost is $25.5

4- getting the job estimate:
job estimate = labor payment + overhead cost + retail
job estimate = 18.75 + 15.9375 + 25.5
job estimate = $60.1875

Hope this helps :)