Question

PLEASE HELP!
Total cost of job = $147.51
Duration of job = 5 hours
Price of parts = $32.50
Overhead rate = 55%

Hourly labor rate = $______ per hour

Answer 1

Do you need the hourly labor rate?

Answer 2

I'm assuming by a0 you mean 10 or 20?

Answer 3

NO we are trying to find the hourly rate and no i ment to put a blank!

Answer 4

@adrianajones we are trying to find he hourly rate!

Answer 5

$52.23 per hour

Answer 6

the labor rate will not include the cost of parts.

However, I do not know if the overhead rate is included or not. Do you know ? (see your book)

Answer 7

Generally speaking I don't believe that overhead would be included in your labor costs, but like Phi said check your book. It will alter the outcome.

So find the actual overhead price not including parts (Subtract parts from total cost)
(total cost - parts = x) then x*0.55 (your 55% overhead) this will give you the overhead cost that we can remove from the total cost.

Take your actual overhead price, subtract it from the total cost, then subtract materials.
Divide that number by the number of hours worked.

Answer 8

Its not 52.23 i already tried that and its a quiz... :( @Mike546 @phi @adrianajones

Answer 9

I never said it was 52.23 if you follow my steps you get $10 and some change (deleted the answer already)

Answer 10

Some one else said that and i tried that it was 10.23 or something!!

Answer 11

Why is overhead rate not in dollars per time?

Answer 12

If it's a quiz do you have certain options?

Answer 13

Depends on if the question is from accounting or not. Then again I could be remembering something completely incorrectly....

Answer 14

no its fill in the blank!!!
THIS IS WHAT IT LOOKS LIKE
10.23 is not the anwser!

Answer 15

*10.35

Answer 16

@surjithayer Why are you multiplying the overhead rate by the cost of parts?

Answer 17

let x be the hourly rate
5x+32.50=147.51
5x=147.51-32.50=115.01
x=115.01/5=23.002
overhead rate=23.002*.55=12.6511
hence hourly rate=23.002-12.6511=10.3509=10.35

Answer 18

@surjithayer @Krisylynn22 attempted 10.35 and said it was not the answer

Answer 19

it is not clear on which term overhead rate is applicable.

Answer 20

it can be (5x+32.50)*155/100=147.51
5x+32.50=147.51*100/155=95.1677
5x=95.1677-32.50=62.6667
x=12.53

Answer 21

Can you give us a formula from your textbook?