If the engineer worked for 20 hours on a job, Z, the overhead rates were 125 per cent of 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

Question

Quizplus · Accepted Answer

First, let's calculate the direct labor cost:
$25 per hour x 20 hours = $500

The overhead rate is 125% of direct labor cost, so the overhead cost is:
$500 x 1.25 = $625

Finally, we can calculate the total cost of the job:
Direct labor cost + overhead cost = Total cost
$500 + $625 = $1125

Therefore, the correct answer is D.

If the Engineer Worked for 20 Hours on a Job