During the 1970s, Generac expanded its offerings in the portable and recreational vehicle markets, and in the 1980s the company entered the commercial and industrial markets with its backup power generation systems.
Add each cost to determine the labor burden cost of the employee. In this example, assume you pay $2,000 in payroll taxes, $1,000 in insurance, $2,000 in benefits and $5,000 in supplies and other miscellaneous expenses. Add together $2,000, $1,000, $2,000 and $5,000 to get a labor burden cost of $10,000.
Divide the full amount paid for direct labor by the full amount for direct labor hours. Keeping with the example, say you paid $108,000 for direct labor. Divide this amount by the 8,000 direct labor hours worked. The amount of the actual rate per direct labor hour is $13.50.owever, if you just paid a lump sum for the direct labor costs, you can find the actual direct labor rate by dividing the total amount paid by the actual hours worked. Step 1. Write down the full amount of the direct labor.