Question

. A work element in the project plan requires 50 hours of labor each by four carpenters. The carpenters are paid $15 per hour and incur an overhead rate equal to 80 percent of their direct labor charges. The total cost would be __________ if the carpenters consume 10 percent of the workday performing personal

Answer 1

Total cost= $1,485

Step-by-step explanation:

Giving the following information:

Work= 50 hours

Hour rate= $15

Overhead= 0.80 of direct labor cost

First, we need to calculate the total labor cost:

We have to add 10% of the time.

Direct labor= (50*1.1)*15= $825

Now, the overhead:

Allocated overhead= 825*0.8= $660

Finally, the total cost:

Total cost= 825 + 660= $1,485