The question does not give the required context.
Some countries charge sales tax on labour, and some may not.
I believe Overhead rate would be added to the labour, meaning that for every $12 paid to the worker, the customer pays $12(labour)+$15(overhead)=27.
If sales tax does not apply to labour, then the total bill is:
12*36*(1+1.25)+185*1.07=1169.95
If sales tax applies to labour, then the total bill is:
(12*36*(1+1.25)+185)*1.07=1237.99
Double-check the above assumptions about overhead rate and sales tax.
Labor rate = $12 per hour
Hours worked = 36
Overhead rate = 125%
Retail price of good furnished = $185
Sales tax rate = 7%
Total bill for services and parts = $
The answer that I got was 762.80. Can you check my answer.
1 answer