Question

Work the following pricing problems for services rendered. (For all calculations use hundredths.) Labor time = 8 hours Overhead rate = 65% Retail price of parts = $98.70 Total cost of job = $242.58 What is hourly rate for labor? 27.67 13.32 10.90 117.08

Answer 1

Hello there :-)

Total cost of job=
retail price of parts+overhead+cost of labor
overhead= cost of labor×overhead rate

Find labor cost
Let labor cost be x

242.58=98.7+0.65x+x
Solve for x
X=87.2. This is labor cost

Now find hourly labor cost
87.2÷8=10.9

Hope it helps