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Finding overhead rate
I know your not supposed to post the whole problem here but I can't think of any other way to describe it. It's asking me to find the overhead rate on the first problem and on the second it's asking me to find the hourly wage using the total cost of the job and overhead rate. I have no idea how to do these problems all I need is someone to show me how to do them because they're going to be on my next test. Thank you.
Compute the following costs of services problem. Hourly rate of labor = $12.00 Duration of job = 3 1/2 hours Overhead rate = 66 2/3% Price of parts = $112.50 Find total cost of job = _____. Compute the following costs of services problem. Total cost of job = $147.51 Duration of job = 5 hours Price of parts = $32.50 Overhead rate = 55% Hourly labor rate = _____ |
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In both cases the formula is simply
Total Job Cost = Labor + Overhead + Parts The "overhead rate" means that Overhead is that given percentage of Labor. The first one is straightforward: you're given Labor, Ohead, and Parts; the Total Job Cost follows immediately. The second one will take a bit o' algebra, but you're just reverse-engineering the formula to determine Labor, and hence the labor rate. |
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