A Work Element in the Project Plan Requires 50 Hours

question 39

Multiple Choice

A work element in the project plan requires 50 hours of labor each by four carpenters.The carpenters are paid $15 per hour and incur an overhead rate equal to 80 percent of their direct labor charges.Based on this data,the appropriate total cost is __________.

• A)$2,400
• B)$3,000
• C)$5,400
• D)$4,600

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Definitions:

Cash Flow

The inflow and outflow of cash representing the operating activities of an organization.

Working Capital

The difference between a company's current assets and current liabilities, indicating operational liquidity.

Straight-Line Depreciation

A procedure for apportioning the expenditure of a tangible good across its viable life in consistent annual amounts.

Income Taxes

Taxes imposed by the government on income generated by businesses and individuals within their jurisdiction.