A crew of 2 skilled workers and 4 helpers is to perform construction work that requires a quantity of 1,250 units. Base wages for a skilled worker and a helper are $50/hr and $25/hr, respectively. The crew’s production rate is known to be 25 units/hr under normal working conditions (8 hours/day). Calculate the total hours that the crew to complete the work and the total direct labor cost to complete the work.

In order to calculate the total hours that it would take to complete the work, divide the total units needed to complete the construction work by the crew's production rate

Total hours it would take to complete the work = total units needed to complete the job / crew’s production rate

1250 units / 25 units/hr = 50 hours

Total direct labor cost = total skilled labor wages + total wages for the helps

Total skilled labor wages = base wages for a skilled worker per hour x total hours needed to complete the work

$50/hr x 50 hours = $2500

total wages for the helps = base wages for the helps per hour x total hours needed to complete the work

$25/hr x 50 hours = $1250

Total direct labour cost = $2500 + $1250 = $3750

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