Problem Description:
The task involves calculating the
total cost of a project based on the given details. The project consists of two phases:
Phase 1 and
Phase 2, with specific costs associated with each phase. Additionally, there is an
overhead cost that needs to be calculated as a percentage of the total direct costs.
#### Given Information:
1.
Phase 1 Cost: $50,000
2.
Phase 2 Cost: $75,000
3.
Overhead Rate: 15% of the total direct costs
#### Objective:
Calculate the
total cost of the project, which includes:
- Direct costs (sum of Phase 1 and Phase 2 costs)
- Overhead costs (15% of the total direct costs)
---
Step-by-Step Solution:
#### Step 1: Calculate the Total Direct Costs
The total direct costs are the sum of the costs for Phase 1 and Phase 2.
\[
\text{Total Direct Costs} = \text{Phase 1 Cost} + \text{Phase 2 Cost}
\]
Substitute the given values:
\[
\text{Total Direct Costs} = 50,000 + 75,000 = 125,000
\]
#### Step 2: Calculate the Overhead Costs
The overhead costs are calculated as 15% of the total direct costs.
\[
\text{Overhead Costs} = \text{Overhead Rate} \times \text{Total Direct Costs}
\]
Substitute the given values:
\[
\text{Overhead Costs} = 0.15 \times 125,000 = 18,750
\]
#### Step 3: Calculate the Total Project Cost
The total project cost is the sum of the total direct costs and the overhead costs.
\[
\text{Total Project Cost} = \text{Total Direct Costs} + \text{Overhead Costs}
\]
Substitute the calculated values:
\[
\text{Total Project Cost} = 125,000 + 18,750 = 143,750
\]
---
Final Answer:
\[
\boxed{143750}
\]
Parent Tip: Review the logic above to help your child master the concept of cost of living worksheet.
