A Hollywood crew has 4 journeymen at $46 per hour and 1 apprentices at $28 per hour. What blended hourly rate should be used?
Correct Answer
D) $42.40
Blended hourly rate divides total hourly crew cost by total crew members.
Why This Is the Correct Answer
Blended hourly rate divides total hourly crew cost by total crew members.
Why the Other Options Are Wrong
Option A: $37.00
$37.00 is below the supported result for crew mix hourly rate; it likely skips a premium-pay or employer-cost component.
Option B: $74.00
$74.00 is above the supported result for crew mix hourly rate; it likely pays the wrong premium tier or counts the same hours twice.
Option C: $50.40
$50.40 is above the supported result for crew mix hourly rate; it likely pays the wrong premium tier or counts the same hours twice.
Memory Technique
Estimator Prices payroll: time, premium, reimbursement, proof in separate buckets.
Reference Hint
Open-book path: tab Builder's Guide to Accounting, 2001 to Builder's Guide to Accounting, Labor rates and job cost estimating; verify the trade cost, production, or field-control rule before answering.
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