# Practice Exam Set 1 Question 5 **URL:** \ **Category:** Practice Management\ **Created:** [February 7, 2025, 8:02pm UTC](https://community.blackspectacles.com/t/practice-exam-set-1-question-5/6425 "2025-02-07T20:02:37Z")\ **Posts on this page:** 2\ **Page:** 1
**Author:** ![charmi.gajjar](https://blackspectacles.com/uploads/images/16.png) [@charmi.gajjar](https://community.blackspectacles.com/u/charmi.gajjar)\ **Post date:** [February 7, 2025, 8:02pm UTC](https://community.blackspectacles.com/t/practice-exam-set-1-question-5/6425/1 "2025-02-07T20:02:37Z")
For question 5. We are provided the net multipler of 3.0. Why do we not divide it with the maximum hourly rate obtained after the last step: Question 16 is similar and we are dividing the total hourly rate with the net multipler. Please explain the difference between question 5 and 16. Answer: Correct. First, find the total fee available for the designer’s labor by subtracting the fee spent on the principal’s and project manager’s time: - $14,000 – ($225 per hour x 4 hours + $150 per hour x 10 hours) = $11,600 Then, divide the remaining fee by the estimated number of hours to be spent by the designer: - $11,600 / 120 hours = $96.67 ---
**Author:** ![kiaragalicinao](https://yyz1.discourse-cdn.com/flex029/user_avatar/community.blackspectacles.com/kiaragalicinao/32/1607_2.png) [@kiaragalicinao](https://community.blackspectacles.com/u/kiaragalicinao)\ **Post date:** [February 11, 2025, 5:03pm UTC](https://community.blackspectacles.com/t/practice-exam-set-1-question-5/6425/2 "2025-02-11T17:03:56Z")
Welcome to the ARE Community @charmi.gajjar! We are happy to have you here. For Question 5, you are given the **hourly billable rates** , which already account for the net multiplier. For Question 16, you are given the **hourly compensation** (salary). You need to then use the net multiplier to determine the billable rates. Hope this helps! Kiara Galicinao, AIA, NCARB **Black Spectacles**