Answer:
Hourly Rate for labor = 10.9%
Step-by-step explanation:
Labor time = 8 hours
Overhead rate = 65%
Retail price of parts = $98.70
Total cost of job = $242.58
Let hourly rate of the labor be r
⇒ Labor time × (1 + overhead rate) × r + Retail price = Total cost
⇒ 8 × (1 + 0.65) × r + 98.70 = 242.58
⇒ 8 × 1.65 × r = 242.58 - 98.70
⇒ 13.2 × r = 143.88
⇒ r = 10.9
Thus, Hourly Rate for labor = 10.9%
