[ktdanielson]

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!

[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?

[ktdanielson]

I have material at $400 and total @2100 but can't get it to compute??

[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.

[ktdanielson]

Thanks!

[morgaine300]

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