Question

Total cost of job = $147.51 Duration of job = 5 hours Price of parts = $32.50 Overhead rate = 55% Hourly labor rate = _____.

Answer 1

$14.84

Explanation:

Total cost of job = $147.51=labor+overhead+parts

Price of parts = $32.50

labor+overhead =147.51-32.5=115.01

Overhead rate = 55%

labor+0.55labor= 115.01

labor=115.01/(1.55)=74.2

Duration of job = 5 hours

hourly labor=74.2/5=$14.84

Answer 2

Hourly labor rate = $14.84

Explanation:

Total cost of job = $147.51

Price of parts = $32.50

Labor cost + overhead = Total cost - parts = 147.51 - 32.5

=115.01

Overhead rate = 55%

Labor cost = 115.01/(1+55%) = 115.01/1.55

=74.2

Duration of job = 5 hours

Hourly labor rate = 74.2/5

= $14.84