Question

Vaughn Manufacturing recently performed repair services for a customer that totaled $400. Somehow the bill was lost and the company accountant was trying to recreate the bill from memory. This is what was remembered:

Total bill	$550
Labor profit margin	10
Materials profit margin	20%
Total labor charges	$340
Cost of materials used	$140
Total hourly cost	$22.5

What was the material loading charge?

Answer 1

Material loading charge = Cost of materials used x Materials profit margin Cost of materials used Materials profit margin Material loading charge $140 20% $28 ($140 x 20%]