SOLUTION: Sanderson Bhp finds that 30% of its costs are direct labour. Each week raw materials cost r2,000 more than twice this amount, and there is an overhead of 20% of direct labour costs

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Question 784511: Sanderson Bhp finds that 30% of its costs are direct labour. Each week raw materials cost r2,000 more than twice this amount, and there is an overhead of 20% of direct labour costs. What are the company’s weekly costs?
Need help with constructing a formula, not just the answer.
Thanks
Answer by KMST(5328) About Me  (Show Source):
You can put this solution on YOUR website!
x= weekly costs (labor + materials + overhead)
0.3x= 30% of weekly costs = direct labor costs
2%2A%280.3x%29%2B2000=0.6x%2B2000= 2,000 more than twice 0.3x = weekly raw materials cost
0.2%2A%280.3x%29=0.06x= 20% of 0.3x = weekly overhead costs

x=0.3x%2B%280.6x%2B2000%29%2B0.06x
x=0.3x%2B0.6x%2B2000%2B0.06x
x=0.3x%2B0.6x%2B0.06x%2B2000
x=%280.3x%2B0.6x%2B0.06x%29%2B2000
x=%280.3%2B0.6%2B0.06%29x%2B2000
x=0.96x%2B2000
x-0.96x=0.96x%2B2000-0.96x
%281-0.96%29x=2000
0.04x=2000

0.04x%2F0.04=2000%2F0.04
highlight%28x=50000%29
Total wekly costs are $50,000.
30% of that is direct labor costs ($15,000=$50,000 X 0.30).
Material cost $32,000 per week ($2,000 more than twice the amount of direct labor costs above).
Weekly overhead costs are $3,000 (20% of direct labor costs).
It adds up;
$15,000+$32,000+$3,000=$50,000