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Job no.352 requires 270 hours of active labor. It is expected that there will be 10% idle time. The wage rate is $8 per hour. What is the labor cost for the job ?
can you explain how to get the answer?
For every 100 hours they pay for, 10 hours will be idle and therefore only 90 hours will be worked.
Putting it the other way round, for every 90 hours of work they will have to pay for 100 hours.
So for 270 hours needed, then will have to pay for 100/90 x 270 = 300 hours at $8 per hour.
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