cost of materials * 2 = labor total cost of materials *2 / total number of production (less overhead) = labor
How do you compute the cost basis for fairpoint communications spin off
You can't.
You cannot compute the cost but you can estimate it on the basis of previous experience.
Relative values at date of spin off
Predetermined overhead rate based on direct labor cost = Budgeted overhead cost / direct labor cost / 100 Predetermined overhead rate based on direct labor cost = budgeted overhead cost / direct labor hours.
A person can compute the target cost of a project by adding in all the material costs as well as the labor. A buffer of 5 to 10 percent should also be added in case of any potential problems.
It depends with the nature of labour in factory, if the labor is on daily basis or for specific number of units produced then it is variable cost but if labor has no connection with the volume of production of units then it is fixed cost as they have to pay no matter production is done or not.
To compute direct labor hours per unit, start by determining the total direct labor hours used in production over a specific period. Next, divide this total by the number of units produced during the same period. The formula is: Direct Labor Hours per Unit = Total Direct Labor Hours / Total Units Produced. This calculation provides insight into labor efficiency and helps in cost analysis.
Slavery was the basis for financial success in that there was only a very small cost for labor.
The cost of the sum of it's parts and labor plus a bit extra for profit for the manufacturer.
The cost of the sum of it's parts and labor plus a bit extra for profit for the manufacturer.
Total Manufacturing Cost: material cost 1000 Add: Labor cost 2000 Add: Overhead cost 3000 Total cost 6000 Number of units produced = 1000 Cost per unit = 6000/1000 Cost per unit = 6