Management Accounting year 1 Job Costing?

Question

Please help have being stuck for ages on this

need to know how to calculate direct labour cost from the following figures.Overhead is 60% of direct labour cost so if i get direct labour cost its easy!!

Payments to creditors 18000
Cost of Raw Materials 23000
Indirect Wages 2000
Sundry Factory Overhead 7000
Cost of Goods Produced 46000


THANX A MILLION xx

ps i know that labour and overheads equal 30000 (defo the right answer)but I have no idea where they got this from

Answer 1

The total expenses (not cogs) is 50,000
60% of that is 30,000

Been thinking about it. If you said Overhead is 60% of direct labor cost, and the overhead expenses are indirect wages and sundry factory overhead. Then (2,000 + 7,000) = 60% of X where X is dlc.
Simple algebra will show that DLC is 15,000

Answer 2

Am at same stage as you on costing hate the subject. Direct labour is labour directly concerned with the final product so I would think you are only going to use the cost of raw materials. but i will be watching your answers closely to help me understand better as well. Good luck with costing, I know I need it lol

Answer 3

OK....need to make an assumption here.....if the cost of goods produced is £46,000 and raw materials cost £23,000 it seems logical that the remaining cost of goods produced is the direct labour cost......ie £23,000. If in doubt state your assumptions. Hope this helps!

Answer 4

it depends largely on the state, where the person is incarcerated and the type of care or support the inmate requires. A general population inmate in Alabama cost less than a geriatric inmate with diabetes in New York. In general? between 30 and 50 thousand dollars a year depending on the level of care.