ABC corporation found that its total indirect costs is $10 million per year.ABC employs 100 direct labor who work 40 hours per week over a 50 working weeks per year. What is the overhead burden for this company? If it takes $10. Of materials and 2 direct labor hour @$20./ lab-hr to make a product, then what is the total cost of making this product?
Overhead burden = (total indirect cost for one year)/ ( total labor hours in one year)=
Cost of a product = material cost /unit + direct labor cost/unit + Overhead cost/unit=