Question

1) Compute the labor rate for Sutton’s Electronic Repair Shop for the year 2020

Question 5 Sutton's Electronic Repair Shop has budgeted the following time and material for 2020. SUTTON'S ELECTRONIC REPAIR SHOP Budgeted Costs for the Year 2020 Time Charges $105,600 Material Loading Charges $25,400 19,200 17,650 Shop employees' wages and benefits Parts manager's salary and benefits Office employee's salary and benefits Overhead (supplies, depreciation, advertising, utilities) Total budgeted costs 24,000 19,950 $148,800 $63,000 Sutton's budgets 4,800 hours of repair time in 2020 and will bill a profit of $11 per labor hour along with a 24% profit markup on the invoice cost of parts. The estimated invoice cost for parts to be used is $105,000. On January 5, 2020, Sutton's is asked to submit a price estimate to fix a 72-inch flat-screen TV. Sutton's estimates that this job will consume 9 hours of labor and $300 in parts.

2) Compute the Material loading percentage

3) Compute the Total Estimated bill

Answer 1

Sutton's Electronic Repair Shop. Requirement a Computation of time charge rate Total Cost / Total Hours = Per hour charge Hourly labor rate for repairs Shop employees' wages and benefits 105600 4800 = 22 19200 4800 4800 24000 Overhead costs Office employee's salary and benefits Other overhead Total Profit margin Rate charged per hour of labor Requirement b Computation of material loading charge Total Invoice Cost, Parts and Materials 105000 Material Loading percentage Overhead costs Parts manager's salary Material Loading Charges 25400 17650 43050 19950 63000 Other overhead 105000 105000 105000 Total 41% 19% 60% 24% 84% Profit margin Material loading percentage Requirement 378 Time and Material Price Quotation January 5, 2020 Job: Fix big screen TV set Labor charges: 9 hours @ $42 Material charges Cost of parts and materials Material loading charge (84% X $300) Total price of labor and material 300 252 552 930