=+Overhead (other than storage and handling) 8 Total base labor rate $35 Additional charge for first hour
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=+Overhead (other than storage and handling) 8 Total base labor rate $35 Additional charge for first hour of any job to cover the cost of vehicle depreciation, fuel, and employee time in transit. A 30-minute transit time is assumed. 5
$40 Third hour:
Base labor rate $35 The trip back to the shop includes vehicle depreciation and fuel; therefore, a charge was added to the hourly rate to cover these costs. The round trip took an hour. 10
$45 Fourth hour:
Base labor rate $35 Overtime premium for time worked in excess of an eight-hour day (starting at 5:00 p.m.) is equal to the base rate. 35
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