Question

Problem 21-03A a-c (Video) (Part Level Submission) 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 Material Loading Charges $108,000 Shop employees' wages and benefits Parts manager's salary and benefits Office employee's salary and benefits Overhead (supplies, depreciation, advertising, utilities) 23,500 26,000 $157,500 $25,400 13,600 16,000 $55,000 Total budgeted costs Sutton's budgets 5,000 hours of repair time in 2020 and will bill a profit of $10 per labor hour along with a 25% profit markup on the invoice cost of parts. The estimated invoice cost for parts to be used is $100,000. 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 4 hours of labor and $200 in parts.

Answer 1

(c)

calculation of time-and-material price quotation for fixing the flat-screen TV
Labor charge [4 hours* ($157500/5000) + 10]		$166
Material charges:
cost of parts and material	$200.00
material loading charge (200*{(55000/100000)+0.25}	160	360
Total price for labor and material		$526