A contractor is estimating labor costs for installing 2,000 square feet of ceramic tile. The productivity rate is 25 square feet per hour, and the labor rate is $32 per hour. What is the total labor cost?
Correct Answer
C) $2,560
Total hours needed = 2,000 sq ft ÷ 25 sq ft/hr = 80 hours. Total labor cost = 80 hours × $32/hr = $2,560.
Why This Is the Correct Answer
Option B is correct because it follows the proper two-step labor cost calculation method. First, we determine the total hours needed by dividing the total square footage (2,000) by the productivity rate (25 sq ft/hr), which equals 80 hours. Then we multiply those hours by the hourly labor rate ($32/hr) to get the total labor cost of $2,560.
Why the Other Options Are Wrong
Option A: $1,600
This answer ($1,600) appears to be calculated by dividing the total square footage by the hourly rate (2,000 ÷ $32 = 62.5, then rounded), which is an incorrect method that skips the productivity rate calculation entirely.
Option D: $3,200
This answer ($3,200) incorrectly multiplies the total square footage by the hourly rate (2,000 × $32 ÷ 20 = $3,200), suggesting a miscalculation in the hours needed or using wrong productivity assumptions.
Memory Technique
Remember 'DivMult' - DIVide total work by productivity rate to get hours, then MULTiply hours by hourly rate to get total cost. The units should cancel out properly: sq ft ÷ (sq ft/hr) = hr, then hr × ($/hr) = $.
Reference Hint
Construction estimating section, specifically labor productivity rates and cost calculations chapter in your contractor reference manual
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