Labor Cost of Placing Rebar

Mediumestimatingproductivitylabour cost
A crew places reinforcing steel at a productivity of 8 crew-hours per ton. The crew consists of one foreman at $45 per hour and three workers at $28 per hour, with a labour burden of 55%. The total labour cost to place 60 tons is most nearly:
  1. A$62,000
  2. B$96,000
  3. C$134,000
  4. D$149,000
Show solution

Answer: B. $96,000

Total crew-hours are 60 tons × 8 h/ton = 480 h. The bare crew rate is $45 + 3($28) = $129 per crew-hour, so bare labour costs 480 × 129 = $61,920. Applying the 55% burden gives 61,920 × 1.55 ≈ $96,000. Omitting the burden entirely leaves $62,000, and applying the burden as a multiplier of 1.55 on top of an already-burdened rate double-counts it.
Practice this deckUntimed, one problem at a time, with your progress saved.

Related problems

Keep studying