Business FinancesQuestion 326 of 1605
A worker is paid a base wage of $30 per hour. With a labor burden of 35%, what is the fully burdened hourly cost the contractor should use for estimating?
a.$10.50
b.$40.50
c.$30.00
d.$45.00
Explanation
Burdened cost = Base Wage × (1 + Burden Rate) = $30 × 1.35 = $40.50. Estimating with only the base wage would understate the true cost of labor.
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