Utah Contractor Practice Exam 2026 - Free Contractor License Practice Questions and Study Guide

To determine the total bid amount presented to the client, you need to factor in both overhead and profit based on the direct costs.

Start with the direct costs, which are $41,000. Calculate the overhead, which is 15% of the direct costs. This is done by multiplying the direct costs by 0.15:

\[ Overhead = Direct\ Costs \times Overhead\ Rate = 41,000 \times 0.15 = 6,150 \]

Next, add the overhead to the direct costs to get the total costs before profit:

\[ Total\ Cost\ Before\ Profit = Direct\ Costs + Overhead = 41,000 + 6,150 = 47,150 \]

Now you can calculate the desired profit, which is 6% of the total costs before profit. To find this, multiply the total costs before profit by 0.06:

\[ Profit = Total\ Cost\ Before\ Profit \times Profit\ Rate = 47,150 \times 0.06 = 2,829 \]

Finally, add the desired profit to the total costs before profit to find the total bid amount:

\[ Total\ Bid\ Amount = Total\ Cost\ Before\ Profit