What is the total project overhead for a project that has specified costs such as labor and materials?

To determine the total project overhead for a construction project that includes costs such as labor and materials, it is essential to understand what project overhead entails. Project overhead typically refers to costs that are not directly attributable to a specific project unit, such as indirect labor, utilities, equipment rentals, administrative costs, and other support expenses necessary to execute the project effectively.

If the stated answer indicates that the total project overhead is "less than $12,000," it suggests that the overhead costs associated with the project are managed efficiently and are kept under a certain threshold. This can imply effective budgeting practices or the use of resources in a way that minimizes unnecessary expenses.

In the context of the provided choices, this option indicates a strategic approach to managing overhead costs, which can be crucial for the overall financial health of a project. Understanding project overhead allows project managers to allocate resources more effectively and ensure that projects remain profitable by keeping indirect costs to a minimum.