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.
1 Divide the overhead costs by the direct labor hours over the same measurement period. 2  In the example, the overhead rate is $20 for each direct labor hour ($2,000/100). Divide the overhead costs by the direct labor hours over the same measurement period. 2  In the example, the overhead rate is $20 for each direct labor hour ($2,000/100).