Question

Chapter 11 Page 428 Problem P8

Time and materials pricing in a Service Business Route 66 Car Repair performs routine maintenance on rental vehicles. Recently, the local auto rental business had its fleet serviced. The company uses the time and material pricing system and data from the previous year to compute markup percentages for overhead related to parts and materials and overhead related to direct labor. It adds markups of 100% to the cost of materials and parts and 120% to the cost of direct labor to cover overhead and profit. The following materials parts and direct labor are needed to repair the rental fleet:

Quantity Unit Price Hours Hourly Rate  

Materials and parts: Direct Labor: 24 spark plugs $0.50 38 Mechanic hours $28.20 50 Oil, quarts 2.50 61 Assistant mechanic hours 14.00 12 hoses 11.20 1 sun visor    13.50 36 coolant, quarts 6.50 4 clamps 5.50 5 emergency kits 12.40 40 washer fluid 1.25 4 tires    300.00   

Prepare a complete billing for this job. Include itemized amounts for each type of materials, parts, and direct labor. Follow the time and materials pricing approach, and show the total price for the job.

Answer 1

material cost for jo bi particulars quantity unit price | Amount in $ spark plugs oil quarts 121 134 Holes sunvisor Coolant quarts 13.5 14 F 8.5 2012 124 clamps. Emergency kills Wash Heid Tires 1025 ŏ 300 1200 material cost 1,883

calculate direct labor cost for job.r . I particular No. of hours mechanic hours . . 38 Assistant mechaniches hendes Dixect Labor cost l hooglyzate , .28-2 Amounting 1,072 854 14 1.926 calculake total for job! Billing particulars Cost . materials cost (mara up 100%) , 1853. mork up I 1853 3,706 1926 | 2311.2 4,237 Direct labor cost (morkup (2007) Todal biting cost 7,943