Question

An employee earning $40/hour works in a department where the overhead is 125%. A billable or charge back hour to this department would be:

Answer 1

$90

Step-by-step explanation:

Calculation for what the billable or charge back hour to this department would be

First step is to multiply overhead percentage by the employee earning per hour

125%×$40/hour

=$50

Now let calculate for the billable or charge back hour to the department

Billable or charge back hour=$50+$40/hour

Billable or charge back hour=$90

Therefore A billable or charge back hour to this department would be: $90