Planning & EstimatingQuestion 74 of 100
When estimating a job, which cost category covers wages, taxes, and workers' compensation for crew hours?
a.Material cost
b.Equipment rental
c.Labor cost
d.Permit fees
Explanation
Labor cost includes crew wages plus payroll burdens such as payroll taxes and workers' compensation insurance. Estimators calculate labor from the hours a task takes multiplied by a fully burdened labor rate. Underestimating labor is a common cause of unprofitable jobs.
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