# Billing rate NCARB practice exam question

**URL:** <https://community.blackspectacles.com/t/billing-rate-ncarb-practice-exam-question/5497>\
**Category:** Project Management\
**Created:** [November 27, 2023, 6:06pm UTC](https://community.blackspectacles.com/t/billing-rate-ncarb-practice-exam-question/5497 "2023-11-27T18:06:02Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![potoczakhalle](https://blackspectacles.com/uploads/images/8.png) [@potoczakhalle](https://community.blackspectacles.com/u/potoczakhalle)\
**Post date:** [November 27, 2023, 6:06pm UTC](https://community.blackspectacles.com/t/billing-rate-ncarb-practice-exam-question/5497/1 "2023-11-27T18:06:02Z")

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This question is taken from NCARB’s free project management practice exam.

> **Question 23**  
> An architect planned 1,000 hours for the design development (DD) phase of a project with an average billing rate of $50 per hour. The project has a planned multiplier of 3.05 and a total DD phase compensation of 152,500. At the end of DD, the architect finds that an excess of 240 labor hours were needed for DD. What is the additional project cost? \_\_\_\_\_\_\_  
> Correct answer: 36600
> 
> CORRECT RESPONSE  
> $36,600  
> CALCULATION
> 
> 1. 240 (additional hours) x $50 (average hourly rate) x 3.05 (multiplier) = $36,600 in additional project costs
> 
> Section: Resource Management

I thought net multiplier is built into billing rate? So why would you multiply by 3.05? Thanks!

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**Author:** ![dnie](https://blackspectacles.com/uploads/images/17.png) [@dnie](https://community.blackspectacles.com/u/dnie)\
**Post date:** [April 2, 2024, 4:26pm UTC](https://community.blackspectacles.com/t/billing-rate-ncarb-practice-exam-question/5497/2 "2024-04-02T16:26:53Z")

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I think you are right, wrong question!