A masonry crew's productivity decreases from 100 blocks per hour to 75 blocks per hour due to cold weather conditions. If the original labor estimate was $12,000, what is the adjusted labor cost?
Correct Answer
A) $16,000
Productivity decreased by 25% (from 100 to 75 blocks/hour). This means 33% more time is needed (100/75 = 1.33). Adjusted cost = $12,000 × 1.33 = $16,000.
Why This Is the Correct Answer
When productivity decreases from 100 to 75 blocks per hour, the crew needs 33.33% more time to complete the same work. The time multiplier is 100÷75 = 1.333. Therefore, the adjusted labor cost is $12,000 × 1.333 = $16,000. This accounts for the additional time required due to reduced efficiency in cold weather conditions.
Why the Other Options Are Wrong
Option B: $14,400
$14,400 represents only a 20% increase ($12,000 × 1.20), which incorrectly assumes the productivity decrease of 25% translates to a 20% cost increase. This fails to account for the inverse relationship between productivity and time required.
Option C: $20,000
$20,000 represents a 67% increase, suggesting productivity dropped much more severely than the actual 25% decrease. This significantly overestimates the weather impact on labor costs.
Memory Technique
Remember 'Flip the Fraction': When productivity goes DOWN, costs go UP by the inverse ratio. 100÷75 = 1.33, so multiply original cost by 1.33.
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