Direct labor costs to account for overhead


A task is expected to take 20 hours of labor at $25 per hour (direct cost). The required material cost is $500. The organization adds a burden of 30% to all direct labor costs to account for overhead. It does not add any burden on top of material costs. The total task cost is:

a. $500

b. $1,150

c. $1,250

d. $1,300

e. $1,500

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Operation Management: Direct labor costs to account for overhead
Reference No:- TGS0517106

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