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-   -   How do I calculate direct labor in job costing? (https://www.askmehelpdesk.com/showthread.php?t=473736)

  • May 26, 2010, 02:30 PM
    ktdanielson
    How do I calculate direct labor in job costing?
    If I know what the direct material costs are and what the total costs are, how do I calculate the $ amount of direct labor? I know that the overhead allocation rate is 75% of the direct material and direct labor combined.

    Thanks!
  • May 27, 2010, 02:37 AM
    morgaine300

    Er... that's a new one on me. It's not uncommon for problems to have overhead as a percent of labor and make you solve for the labor and overhead -- I've never seen overhead as a percent of combined material and labor.

    But:

    material + labor + .75 (material + labor) = total

    Can you plug in and solve the algebra?
  • May 27, 2010, 05:57 AM
    ktdanielson

    I have material at $400 and total @2100 but can't get it to compute??
  • May 27, 2010, 03:33 PM
    morgaine300

    So 400 + L + .75(400 + L) = 2100

    Are you having trouble setting that up, or solving the algebra? Distribute first, then combine like terms, and then solve for the L.
  • May 27, 2010, 04:13 PM
    ktdanielson

    Thanks!
  • May 28, 2010, 11:49 PM
    morgaine300

    You're welcome. (I guess that means you were having trouble setting it up.)

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