Tài chính doanh nghiệpCâu 1111 / 1605
A contractor's annual overhead is $120,000 and he expects $600,000 in direct job costs this year. What overhead rate should he add to each job's direct cost to recover overhead?
a.25%
b.12%
c.5%
d.20%
Giải thích
Overhead recovery rate = annual overhead / annual direct costs = $120,000 / $600,000 = 0.20 = 20%. He adds 20% of each job's direct cost to cover overhead, then adds profit on top.
Luyện miễn phí toàn bộ 1605 câu hỏi — không cần đăng ký.
Câu hỏi liên quan cùng chủ đề
- Which statement about markup and margin is correct?
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- A contractor applies a 100% markup on a $3,000 cost. What margin does that represent, and what is the price?
- Which of the following is an example of OVERHEAD (indirect cost) rather than a direct job cost?
- A contractor's job has $10,000 direct costs. He adds 15% for overhead and then 10% profit on the resulting subtotal. What is the final price?
- Overhead costs are best described as:
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Người kiểm duyệt Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — kiểm tra)