Maintenance and Improvement

​If your business owns a structure, you will need people to clean, paint, repair, and maintain the building. You may have your own maintenance department, or you may hire a service firm. The total cost of a maintenance job generally includes a labor charge. The labor charge is the only cost of paying the people who do the job. It is calculated on an hourly basis for each laborer. In some cases the cleaning and maintenance charge is based on square footage. You will also pay for the materials used. The formula is:

​Labor Charge + Materials Charge = Total Charge

​Central Law Offices hired Commercial Painting to paint its offices. Four painters worked 23 hours each to complete the job. The regular hourly rate for each painter is $36.00. All work was done on weekends, so the painters were paid time and a half. The painters used 60 gallons of paint, for which they charged $29.75 per gallon. What was the total charge for paining the offices?

​Step 1: Find the labor charge.

​(Hourly Rate x Weekend Rate) x Hours Worked x Amount of Painters

​($36.00 x 1.5) x 23 x 4 = $4,968

​Step 2: Find the materials charge

​Gallons of Paint x Amount per Gallon

​60 x $29.75 = $1,785

​

​Step 3: Find the total charge.

​Labor Charge + Materials Charge

​$4,968 + $1,785 = $6,753