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.Based on this data,the appropriate total cost is __________.
A)$2,400
B)$3,000
C)$4,600
D)$5,400

Question

Quizplus · Accepted Answer

The total direct labor cost is 4 carpenters * 50 hours * $15/hour = $3,000. The overhead cost is 80% of $3,000, which is $2,400. Therefore, the total cost is $3,000 + $2,400 = $5,400.

A Work Element in the Project Plan Requires 50 Hours