Question

Waterways uses time and material pricing when it bids on irrigation projects. Budgeted data for the coming year are as follows. WATERWAYS CORPORATION Budgeted Costs for Irrigation Projects Time Charges $243,000 Material Loading charges Labor wages (6,000 hours) Supervisor's salary Clerical and accountant wages Irrigation supplies manager Overhead 58,800 $57,000 3,000 41,000 21,140 $122, 140 57,000 $358,800 Total Waterways has budgeted for 6,000 labor hours. It desires a $15 profit margin per hour of labor and 16% profit on materials. It estimates the total invoice cost of materials in the coming year will be $620,000. x Your answer is incorrect. Try again. Compute the rate per hour of labor. (Round answer to 2 decimal places, e.g. 52.75.) Labor rate 40.50 per hour LINK TO TEXT * Your answer is incorrect. Try again. Compute the material loading charge. (Round answer to 2 decimal places, e.g. 52.75%.) Material loading charge 103.33

Answer 1

1
Budgeted cost per labor hour	59.80	=358800/6000
Add: Profit margin	15.00
Labor rate	74.80	per hour
2
Material loading charges	19.70%	=122140/620000
Add: Profit on parts	16.00%
Material loading charge	35.70%