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Work the following pricing problems for services rendered. (round to hundredths.) labor rate = $8.50 per hour labor time = 4 3/4 hours overhead rate = 85% retail price for parts = $17.75 total job cost?

a) $49.11
b) $92.45
c) $86.00
d) $52.07

1 Answer

6 votes

Final Answer:

The total job cost is $92.45. Thus option b is correct.

Step-by-step explanation:

To calculate the total job cost, we need to consider the cost of labor, overhead, and the retail price for parts.

The labor cost is calculated by multiplying the labor rate ($8.50 per hour) by the labor time (4 3/4 hours). To convert the mixed number 4 3/4 to an improper fraction: 4 3/4 = (4 * 4 + 3) / 4 = 19/4 hours. Therefore, the labor cost is $8.50/hour * 19/4 hours = $40.375, rounded to $40.38.

The overhead cost is calculated by applying the overhead rate of 85% to the labor cost: 85% of $40.38 = $34.323, rounded to $34.32.

The retail price for parts is given as $17.75.

The total job cost is the sum of labor cost, overhead cost, and the retail price for parts: $40.38 (labor cost) + $34.32 (overhead cost) + $17.75 (retail price for parts) = $92.45.

Therefore, the correct answer is b) $92.45, which represents the total job cost for the services rendered, rounded to the nearest hundredths.

Thus option b is correct.

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