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Exercise 22-8 Second Chance Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2017 is available for Second Chance. Time Charges $266,000 Material Loading Charges Technicians' wages and benefits Parts manager's salary and benefits Office employee's salary and benefits Other overhead Total budgeted costs 45,600 22,800 $334,400 $40,000 10,947 28,210 $79,157 The company desires a $35.00 profit margin per hour of labor and a 26.00% profit margin on parts. It has budgeted for 7,600 hours of repair time in the coming year, and estimates that the total invoice cost of parts and materials in 2017 will be $403,000. Compute the rate charged per hour of labor. (Round answer to 2 decimal places, e.g. 10.50.) Labor rate per hour LINK TO TEXT Compute the material loading percentage. (Round answer to 3 decimal places, e.g. 10.501.) Material loading percentage

Answer 1

a.
Calculation of rate charged per hour of labor
Total time charges	$334,400.00
Budgeted repair time	7600
Labor rate	$44.00
Profit margin on labor cost	$35.00
Labor rate charged per hour	$79.00	(44+35)
b.
Calculation of material loading percentage
Material loading percentage	19.642%	79157/403000
Profit margin on parts	26.000%
Material loading percentage	45.642%
c.
Calculation of total estimated bill
Time charges	$3,239.00	41*79
Material loading %	$1,049.76	2300*45.642%
Cost of parts	$2,300.00
Total estimated bill	$6,588.76