Two projects of equal value have been evaluated using a multifactor productivity measure that combined labor-hours at $40 per hour and overhead expense calculated as 30% of labor expense for the first project. the two projects were judged to have been equally productive, although the first project used twice as many labor-hours. at what rate was overhead expense being charged to the second project?

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05-09-2022
Business

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Two projects of equal value have been evaluated using a multifactor productivity measure that combined labor-hours at $40 per hour and overhead expense calculated as 30% of labor expense for the first project. the two projects were judged to have been equally productive, although the first project used twice as many labor-hours. at what rate was overhead expense being charged to the second project?

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