Business FinancesQuestion 1122 of 1632
A framing job needs 3,200 board feet of lumber at $0.85 per board foot, plus 40 labor hours at $45/hour. What is the estimated direct cost?
a.$4,520
b.$3,920
c.$4,840
d.$2,720
Explanation
Materials are 3,200 x $0.85 = $2,720 and labour is 40 x $45 = $1,800, so the direct cost is $4,520. $3,920 comes from pricing the labour at $30 an hour instead of $45. $4,840 comes from reading the lumber at $0.95 a board foot. $2,720 is the materials alone, with the labour line left out of the estimate.
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