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.
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.
Relative values at date of spin off
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.
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
Predetermined overhead rate = Est. total Manuf. Overhead Cost / Est. total amt of allocation base In this case, allocation base would be direct labor (as opposed to machine labor). Hope this helps