Total cost of job = $147.51
Duration of job = 5 hours
Price of parts = $32.50
Overhead rate = 55%
Hourly labor rate = $
14.84 per hour
To find the hourly labor rate, we need to determine the labor cost for the job. The labor cost is calculated by subtracting the cost of the parts and overhead from the total cost of the job.
Total cost of job = Labor cost + Cost of parts + Overhead
Given:
Total cost of job = $147.51
Cost of parts = $32.50
Overhead rate = 55%
Let's calculate the labor cost first:
Labor cost = Total cost of job - (Cost of parts + Overhead)
Labor cost = $147.51 - ($32.50 + 55% of $147.51)
To find 55% of $147.51, multiply $147.51 by 0.55:
55% of $147.51 = 0.55 * $147.51
So, 55% of $147.51 is $81.13
Labor cost = $147.51 - ($32.50 + $81.13)
Now, let's simplify the expression:
Labor cost = $147.51 - $113.63
Labor cost = $33.88
Finally, to find the hourly labor rate, divide the labor cost by the duration of the job:
Hourly labor rate = Labor cost / Duration of job
Hourly labor rate = $33.88 / 5
Answer: The hourly labor rate is $6.776.