Compute the direct labor (including taxes and fringe benefits) and the overhead rate based on the following information. Assume that there is only one labor rate and no one exceeds the FICA limit.

Projected hours worked for the year is 20,000 with each person working 2,000 hours per year. Holiday and vacation hours are 80 hours per person per year.

Labor rate $20 per hour

FICA 7.65%

FUTA and SUTA 1% based on the first $8,000 of wages paid.

All direct labor employees are covered by health insurance that costs $40,000 per year.

Pension costs are calculated at 5% of gross salary.

Workers compensation is calculated at 3% of gross salary.

Overhead costs for the year are projected to be $1,000,000.