A crew works 20 overtime hours with a $36/hr base rate and time-and-one-half premium. What is the overtime labor cost?
Correct Answer
C) $1,080
The overtime rate is $36 x 1.5 = $54/hr, and 20 x $54 = $1,080.
Why This Is the Correct Answer
The overtime rate is $36 x 1.5 = $54/hr, and 20 x $54 = $1,080.
Why the Other Options Are Wrong
Option A: $720
overtime premium cost, choice a: $720 is produced by 20 x $36. The error is using that partial/alternate setup.
Option B: $900
overtime premium cost, choice c: $900 backs into 25 when divided by $36; the accepted setup gives 30 on that same base.
Option D: $1,440
overtime premium cost, choice d: $1,440 backs into 40 when divided by $36; the accepted setup gives 30 on that same base.
Memory Technique
Store overtime premium cost with its last math move; nearby answers are usually unfinished versions of $1,080.
Reference Hint
Open Construction Jobsite Management, 5th Ed. (2024); use by topic index - labor hours / productivity / earned value / job cost to confirm that The overtime rate is $36 x 1.5 = $54/hr, and 20 x $54 = $1,080.
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