A systems analyst is paid at the rate of $50/hour and will be needed for 40 hours.Her employer uses an overhead multiplier of 60% and does not factor in personal time.Her total direct labor cost should be billed at:
A)$2,000.
B)$3,200.
C)$1,250.
D)$4,500.

Question

Quizplus · Accepted Answer

Direct labor cost = rate x hours = $50/hour x 40 hours = $2,000
Overhead cost = direct labor cost x overhead multiplier = $2,000 x 60% = $1,200
Total cost = direct labor cost + overhead cost = $2,000 + $1,200 = $3,200

A Systems Analyst Is Paid at the Rate of $50/hour