A contractor is estimating labor costs for installing 2,400 square feet of ceramic tile. If the productivity rate is 25 square feet per hour and the labor rate is $32 per hour including benefits, what is the total labor cost?
Correct Answer
D) $3,072
First calculate total hours: 2,400 sq ft ÷ 25 sq ft/hour = 96 hours. Then multiply by labor rate: 96 hours × $32/hour = $3,072.
Why This Is the Correct Answer
Option B is correct because it follows the proper two-step labor cost calculation method. First, you determine the total hours needed by dividing the total square footage (2,400) by the productivity rate (25 sq ft/hour), which equals 96 hours. Then you multiply the total hours by the hourly labor rate ($32/hour) to get the total labor cost of $3,072.
Why the Other Options Are Wrong
Option A: $4,096
This answer ($4,096) uses an incorrect hourly rate of approximately $42.67, which is significantly higher than the given $32/hour rate including benefits.
Option C: $2,560
This answer ($3,584) suggests using an inflated hourly rate of approximately $37.33 instead of the given $32/hour, possibly adding unnecessary markups or miscalculating.
Memory Technique
Remember 'DPR' - Divide by Productivity Rate first, then multiply by hourly Rate. Think 'Hours first, dollars second' to avoid mixing up the calculation sequence.
Reference Hint
Look up labor productivity rates and cost estimation methods in the Construction Estimating or Project Management chapters of your contractor reference manual.
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