If the Engineer Worked for 20 Hours on a Job,Z,and

question 20

Multiple Choice

If the engineer worked for 20 hours on a job,Z,and the rates were overhead 125 per cent on direct labour cost and the direct labour rate was $25 per hour,what is the total cost of the job?

• A) $500
• B) $625
• C) $1000
• D) $1125

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Definitions:

Indirect

Expenses or actions that are not directly tied to a specific product, service, or activity but are necessary for the general operation of a business, such as utilities or management salaries.

Product Assembly

The process of putting together various components to form a final product.

Labor Incurred

The total cost of workforce employed for a certain period, including wages, benefits, and taxes related to labor.

Direct

Pertaining to costs, expenses, or activities that can be specifically traced to a particular project, department, or product without allocation.