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

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) (Show Source): You can put this solution on YOUR website!
= weekly costs (labor + materials + overhead)
= 30% of weekly costs = direct labor costs
= 2,000 more than twice = weekly raw materials cost
= 20% of = weekly overhead costs

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
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