A task is expected to take 20 hours of labor at $25 per hour. The required material cost is $500 and the organization charges 30% of direct labor for overhead. The total task cost is:
A) $500
B) $1,150
C) $1,250
D) $1,300
E) $1,500

Question

Quizplus · Accepted Answer

The total task cost is calculated by adding the labor cost, material cost, and overhead. Labor cost is 20 hours * $25/hour = $500. Overhead is 30% of labor, so $500 * 30% = $150. Adding these to the material cost ($500), the total is $500 (labor) + $150 (overhead) + $500 (material) = $1,150.

A Task Is Expected to Take 20 Hours of Labor