Question

Labor time = 6 1/2 hours Overhead rate = 55% Retail price of parts = $114.70 Total cost of job = $231.08 What is hourly rate for labor?

Answer 1

x= hourly rate for labor

Total paid equals hourly rate times # of hours plus price of parts

$231.08= 6 1/2x + $114.70
subtract 114.70 from both sides
116.38= 6.5x
divide both sides by 6.5
$17.90= x

$17.90 is the hourly rate for labor.

Hope this helps! :)

Answer 2

Answer: The  hourly rate for labor is $11.55

Step-by-step explanation:

Hi, to solve this problem you have to discount the retail price of parts ($114.70)

to the total cost of job ($231.08).

So:

$231.8- $114.70 ==$116.38

The result obtained is the total cost of labor.

Next, you have to divide the total cost of labor by the labor time, in this case 6 1/2 hours (6.15 hours).

So:

$116.38 ÷6.15 h = $17.90 /h

Finally, divide by the  overhead (55%):

$17.90 /h ÷ 1.55 =$11.55

Feel free to ask for more if it´s necessary or if you did not understand something.