Direct labor burden includes which of the following costs?

Direct labor burden encompasses additional costs associated with employing workers beyond their base wages. These costs include payroll taxes, insurance contributions, and employee benefits such as health insurance and retirement plan contributions. This is critical for accurately calculating the total cost of labor for a project, as direct labor burden reflects the real financial commitment of employing personnel.

While wages paid to employees are a significant component of direct labor costs, they do not encompass the full picture without considering these additional expenses. Costs of materials used in projects are unrelated to direct labor burden, as they pertain to materials and supplies rather than labor. Administrative overhead costs are also separate from direct labor burden, focusing on general business expenses not directly tied to labor. Understanding direct labor burden is essential for contractors to accurately estimate project costs and manage their budgets effectively.