Question

Work the following pricing problems for services rendered. (Round to hundredths.) Hourly rate, worker A = $15.00 Hourly rate, worker B = $8.00 Hourly rate, worker C = $5.25 Labor time, worker A = 2 1/2 hours Labor time, worker B = 1 hour Labor time, worker C = 3/4 hour Overhead rate = 75% Retail price of goods = $125.50 Total cost of job? 137.86 165.58 187.30 212.02

Answer 1

Hello there :-)

Total cost of job=retail price of goods+labor cost+overhead

Labor cost
15×2.5+8×1+5.25×(3÷4)
=49.44 this is labor cost

Overhead= labor cost×overhead rate
Overhead=49.44×0.75=37.08

Now find total cost of job
Total cost of job=125.50+49.44+37.08
=212.02....answer

Hope it helps