Question

Exercise 22-9 Rey Custom Electronics (RCE) sells and installs complete security, computer, audio, and video systems for homes. On newly constructed homes it provides bids using time-and-material pricing. The following budgeted cost data are available. Material Loading Charges Technicians' wages and benefits Parts manager's salary and benefits Office employee's salary and benefits Other overhead Total budgeted costs Time Charges $156,789 - 31,858 13,269 $ 201,916 $ 35,000 8,440 46,698 $ 90,138 The company has budgeted for 6,410 hours of technician time during the coming year. It desires a $ 37.83 profit margin per hour of labor and an 80% profit on parts. It estimates the total invoice cost of parts and materials in 2017 will be s 724,000. Compute the rate charged per hour of labor. (Round answer to 2 decimal places, e.g. 10.50.) Labor rates per hour LINK TO TEXT VIDEO: SIMILAR EXERCISE Compute the material loading percentage. (Round answer to 2 decimal places, e.g. 10.50.) Material loading percentage LINK TO TEXT VIDEO: STMTLAR EXERCISE RCE has just received a request for a bid from Buil Builders on a $ 1,245,000 new home. The company estimates that it would require 80 hours of labor and $ 43,800 of parts. Compute the total estimated bill. (Round answer to 2 decimal places, e.g. 10.50.) Total estimated bills

Answer 1

solution: Time Charges total hours computation of labor rate per hour Technicians' wages and benefits Office employee's salary and benefits Other overhead Total budgeted costs profit margin labor rate charge per hour 156,789 = 31,858 : 13,269 = 201,916 6,410 6,410 6,410 6,410 per hour charge 24.46 4.97 2.07 31.50 37.83 69.33 total invoice cost, parts and material matrial loading charge computation of material loading charge percentage Parts manager's salary and benefits Office employee's salary and benefits material loading charges 35,000 8,440 43,440 = 46,698 90,138 = 724,000 724,000 724,000 Other overhead Total budgeted costs profit margin material loading percentage 6.00% 6.45% 12.45% 80.00% 92.45% 5,546.41 calculation of total estimated bill labor charge (80 hours* $69.33 per hour) material charges cost of parts and material material loading charge (43800*92.45%) Total estimated bill 43,800.00 40,493.10 84,293.10 89,839.51 + Sheet391 Sheet392 Sheet393Sheet394 Sheet395 Sheet396 Sheet397Sheet398 Sheet399 Sheet40 U ENG US 14:59 30/11/2019