Labor cost

All labour at basic rate (excluding idle time) is a direct cost. It is only the overtime premium (and the idle time) that is an indirect cost. They worked 6528 hours. 188 of these hours were idle time, which leave 6340 worked hours. 6340 x $4 = $25,360, and this is the direct cost. Have you watched me free lectures on this? The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.