A change proposal includes 320 labor-hours at $48/hour plus a 12 percent labor burden. What loaded labor cost should be carried?
Correct Answer
C) $17,203
Base labor is 320 x $48 = $15,360. Applying 12% burden gives $15,360 x 1.12 = $17,203.20, or about $17,203. Other choices omit burden or apply unsupported percentages.
Why This Is the Correct Answer
Base labor is 320 x $48 = $15,360. Applying 12% burden gives $15,360 x 1.12 = $17,203.20, or about $17,203. Other choices omit burden or apply unsupported percentages.
Why the Other Options Are Wrong
Option A: $15,360
loaded labor cost, choice a: the answer choice lifts $15,360 from the working line Base labor is 320 x 48 = 15360.
Option B: $18,432
loaded labor cost, choice c: $18,432 backs into 384 when divided by $48; the accepted setup gives 358.4 on that same base.
Option D: $20,160
loaded labor cost, choice d: $20,160 backs into 63 when divided by 320; the accepted setup gives 53.76 on that same base.
Memory Technique
Keep a release point beside loaded labor cost: if one number is skipped, the option drifts away from $17,203.
Reference Hint
Open NASCLA Contractors Guide to Business, Law and Project Management, 14th Ed.; use the index entry or section for "Change proposal labor pricing" to confirm that Base labor is 320 x $48 = $15,360.
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