Question

Rachel, a project manager, has undertaken a project to build a wall around a compound. She estimates that the cost of materials will be $520 and labor costs will be $10 for 20 hours.

1. If the overheads for this project are 50 percent of the labor and material costs, the total cost will ________.
a.1080
b.1560
c. 880
d. 780

Answer 1

a.1080

Step-by-step explanation:

If the overhead for this project is 50% of the labor and material costs, the cost is 1.5 times the labor and material costs.

Materials cost is fixed at $520, while labor costs are variable at rate of $10. If project requires 20 labor hours, total cost is:

`C = 1.5*(Material+Labor)\\C=1.5*(\$520+20*\$10)\\C=\$1,080`

The total cost will be $1,080.