Material Cost | |||||
Purchased | $ 1,50,000 | ||||
Add: Profit Margin | $ 37,500 | ||||
(150000*.25) | |||||
Add: | |||||
Purchasing, Handling, and storage | $ 30,000 | ||||
(241250/1206250 *150000) | |||||
Total | $ 2,17,500 | ||||
Labor Cost | |||||
Direct Labor | $ 12,000 | ||||
(160 direct labor hours *$75 per hour) | |||||
Add: | |||||
Overhead Cost | $ 16,800 | ||||
($666750/6350 *160 Hours) | |||||
Subtotal | $ 28,800 | ||||
Add: Profit Margin | $ 7,200 | ||||
($28800*25%) | |||||
Total | $ 36,000.00 | ||||
Therefore total price of the project | |||||
=$217500+36000 | |||||
=$253500 | |||||
Therefore the last option is correct. | |||||
Shale Remodeling uses time and materials pricing. It is setting prices for next year using the...
ssional Development Pro... Ch 23 Homework Helps Exercise 23-15 Time And Materi. (935)+760*1.5) - Google Search Thread: Profes Exercise 23-15 Time and materials pricing A1 1.12 points HH Auto Repair reports the following information for the coming year. eBook 54 per labor hour 11,800 hours $2,180,000 Labor rate, including fringe benefits Annual labor hours Annual materials (parts) purchases Annual overhead costs: Materials purchasing, handling, and storage Other overhead (depreciation, insurance, taxes, rent) Target profit margin (on both labor and materials)...