[wintergirl]

How do I calcualte direct labor? Do I include the Payroll Taxes and Insurances along with the actual payroll cost?

[rsenn]

How do I calcualte direct labor? Do I include the Payroll Taxes and Insurances along with the actual payroll cost?

Those are usually considered to be fringe benefits, an indirect cost associated with labor.

If your available options do not include the term fringe benefits, probably your teacher is looking for overhead.