Question 784511
{{{x}}}= weekly costs (labor + materials + overhead)
{{{0.3x}}}= 30% of weekly costs = direct labor costs
{{{2*(0.3x)+2000=0.6x+2000}}}= 2,000 more than twice {{{0.3x}}} = weekly raw materials cost
{{{0.2*(0.3x)=0.06x}}}= 20% of {{{0.3x}}} = weekly overhead costs
 
{{{x=0.3x+(0.6x+2000)+0.06x}}}
{{{x=0.3x+0.6x+2000+0.06x}}}
{{{x=0.3x+0.6x+0.06x+2000}}}
{{{x=(0.3x+0.6x+0.06x)+2000}}}
{{{x=(0.3+0.6+0.06)x+2000}}}
{{{x=0.96x+2000}}}
{{{x-0.96x=0.96x+2000-0.96x}}}
{{{(1-0.96)x=2000}}}
{{{0.04x=2000}}}


{{{0.04x/0.04=2000/0.04}}}
{{{highlight(x=50000)}}}
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