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Assume that overhead is charged on a flat-rate basis. Each member of the project is assigned an overhead charge of $100/week. What would the fully loaded cost of labor be for an employee, given that she is assigned to the project for 280 hours at $15/hour? Hint: The hours that the employee works (280 hours) would equate to 7 weeks.

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Answer:

Total cost= $4,900

Explanation:

Giving the following information:

Each member of the project is assigned an overhead charge of $100/week. What would the fully loaded cost of labor be for an employee, given that she is assigned to the project for 280 hours at $15/hour? Hint: The hours that the employee works (280 hours) would equate to 7 weeks.

Total cost= direct labor + allocated overhead

Total cost= 280*15 + 100*7= $4,900

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