Question

Second Chance Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2017 is available for Second Chance.

Exercise 22-8 (Part Level Submission) Second Chance Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2017 is available for Second Chance Time Charges $229,100 Material Loading Charges Technicians' wages and benefits Parts manager's salary and benefits Office employee's salary and benefits Other overhead Total budgeted costs 55,300 31,600 $316,000 $40,500 10,735 20,450 $71,685 The company desires a $37.00 profit margin per hour of labor and a 21.00% profit margin on parts. It has budgeted for 7,900 hours of repair time in the coming year, and estimates that the total invoice cost of parts and materials in 2017 will be $409,000

Answer 1

total estimated bill						8952.81	answer

Rate charged per hour of labor
				time	budgeted	rate
				charges=a	hrs=b	c=a/b
Technicians wages and benefits				229,100	7,900	29.00
office employee's salary and benefits				55,300	7,900	7.00
other overhead				31,600	7,900	4.00
total budgeted costs				316,000	7,900	40.00
Add:Profit margin						37.00
						117.00	Rate charged per hr hour
Answer=	$117.00
Material loading percentage
				material	total	%
				loading	invoice
				charges	cost
				A	B	c=a/b*100
parts managers&office employees salary				51235	409,000	12.53%
other overhead				20,450	409,000	5.00%
total percentage				71685		17.53%
add:profit margin						21%
material loading percentage						38.53%
Answer -	38.53%	answer
Total Estimated bill
labor charges		41 hours * $117				4797.00
Material charges:
cost of material parts					3,000
material loading charges			(3000*38.53%)		1155.807	4155.81
total estimated bill						8952.81	answer