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

Labor time = 4 1/2 hours = 4.5 hours
overhead rate = 95% - mostly dependent on labor
retail price of parts = 134.75
total cost of job = 241.98

241.98 - 134.75 = 107.23
107.25 / (4.5 x 1.95) = 107.25 / 8.78 = 12.22 hourly rate

labor : 12.22 x 4.5 = 54.99
overhead: 54.99 x 95% = 52.24
retail price of parts = 134.75
total cost of job: 241.98