Question

Work the following pricing problems for services rendered. (For all calculations use hundredths.)

Labor time = 4 1/2 hours
Overhead rate = 95%
Retail price of parts = $134.75
Total cost of job = $241.98
Hourly rate?

Answer 1

12.22

Explanation:

Answer 2

Hourly Rate = $12.22 per hour

Explanation:

`\text{Labor Time = }4\tfrac{1}{2}=4.5\thinspace{ hours}`

Overhead Rate = 95%

Retail price of parts = $134.75

Total cost of job = $241.98

Cost of labor = Total cost - Retail price

= 241.98 - 134.75

= $107.23

Now, labor works for 4.5 hours and ears a total amount of $107.23

`\implies\text{Amount earned in one hour or hourly rate = }(107.23)/(4.5)\\\\\implies \text{Hourly rate = }\$23.83\text{ per hour}`

Now, Labor will get 95% overhead rate

⇒ The labor is getting 100% already but an overhead of 95% is also given

`\text{So, Hourly Rate = }(23.83)/(1+0.95)\\\\\bf\implies\textbf{Hourly Rate = }\$12.22\textbf{ per hour}`