Question

Current Attempt In Progress Second Chance Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2020 is available for Second Chance. Time Charges $238,000 Material Loading Charges Technicians' wages and benefits Parts manager's salary and benefits Office employee's salary and benefits Other overhead Total budgeted costs 49,000 35,000 $322,000 $40,100 7,430 27,440 $74,970 The company desires a $37 profit margin per hour of labor and a 20.00% profit margin on parts. It has budgeted for 7,000 hours of repair time in the coming year, and estimates that the total invoice cost of parts and materials in 2020 will be $392,000. Compute the rate charged per hour of labor. Labor rate $ per hour e Textbook and Media

Answer 1

	CALCULATION OF TOTAL COST OF LABOUR AND RATE CHARGED PER HOUR
	Technician Wages and benefits	$               2,38,000
	Office employee salary and benefits	$                  49,000
	Other Overhead	$                  35,000
	Total Cost	$               3,22,000
	Divide By Budgeted Hours	"/" By 7,000 Hrs
	Cost per Hour	$                       46.0
	Add: Profit margin per hours	$                       37.0
	Total Chargeable rate per hour	$                       83.0
	Answer = Labour Rate = $ 83 Per hour