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A task is expected to take 20 hours of labor at $25 per hour (direct cost). The required material cost is $500. The organization adds a burden of 30% to all direct labor costs to account for overhead. It does not add any burden on top of material costs. The total task cost is:
a. $500
b. $1,150
c. $1,250
d. $1,300
e. $1,500
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Malcolm Fox and Rhonda Ford are equal partners in MFRF LLP, a small business consulting firm. The partners are not related and are all U.S. citizens.
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