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Evaluating a Firm’s Financial Metrics [Exercise B]
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On question 3, why is the admin indirect labor not considered? It is $60,000 and is not used in the claculation?
@kylesces I’m not sure I understand which figure you are referring to. Can you please clarify where this $60,000 is coming from in relation to admin indirect labor? Question 3 is asking you to calculate indirect labor, which you would find from subtracting direct labor from total labor.
Kiara Galicinao, AIA, NCARB
Product Coordinator
Black Spectacles
question 3 asks us to claculate “total Indirect Labor” for the firm using the Annual Budget.
Indirect Labor Salary (Admin) = 60,000.
My understanding, and I believe the understanding of kyleces, is that this 60,000 should be included in the firm’s total Indirect Labor. However, the correct answer only incorporates the Indirect Labor of the design team (Principle, Architect, and Designer). Why are we mistaken?