A field change includes 28 added labor-hours at $69 per hour plus $880 in material. What direct cost should be priced before markup?
Correct Answer
A) $2,812.
Labor cost = 28 × $69 = $1,932. Add the stated $880 material cost to obtain $2,812 before markup. The $1,932 choice omits material; neither $2,420 nor $3,260 equals the supplied sum. No wage premium, tax or additional employer charge is specified in this direct-cost exercise.
Why This Is the Correct Answer
Labor cost = 28 × $69 = $1,932. Add the stated $880 material cost to obtain $2,812 before markup. The $1,932 choice omits material; neither $2,420 nor $3,260 equals the supplied sum. No wage premium, tax or additional employer charge is specified in this direct-cost exercise.
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