Question

Sutton’s Electronic Repair Shop has budgeted the following time and material for 2020. SUTTON’S ELECTRONIC REPAIR SHOP Budgeted Costs for the Year 2020 Time Charges Material Loading Charges Shop employees’ wages and benefits $105,500 ― Parts manager’s salary and benefits ― $25,400 Office employee’s salary and benefits 21,500 15,600 Overhead (supplies, depreciation, advertising, utilities) 28,000 20,000 Total budgeted costs $155,000 $61,000 Sutton’s budgets 5,000 hours of repair time in 2020 and will bill a profit of $11 per labor hour along with a 29% profit markup on the invoice cost of parts. The estimated invoice cost for parts to be used is $100,000. On January 5, 2020, Sutton’s is asked to submit a price estimate to fix a 72-inch flat-screen TV. Sutton’s estimates that this job will consume 6 hours of labor and $400 in parts.

Compute the labor rate for Sutton’s Electronic Repair Shop for the year 2020. (Round answer to 2 decimal places, e.g. 10.50.) Labour rate $ per hour Link to Text Link to Video

Compute the material loading charge percentage for Sutton’s Electronic Repair Shop for the year 2020. Material loading percentage % Link to Text Link to Video

Calculate the time-and-material price quotation for fixing the flat-screen TV. Total price of labor and material $

Answer 1

1)	Rate charged per hour of labor
					time	budgeted	rate
					charges=a	hrs=b	c=a/b
	shop employee wages and benefits				105,500	5,000	21.10
	office employee's salary and benefits				21,500	5,000	4.30
	other overhead				28,000	5,000	5.60
	total budgeted costs				155,000	5,000	31.00
	Add:Profit margin						11.00
							42.00	Rate charged per hr hour
	Answer=	$42.00
2)	Material loading percentage
					material	total	%
					loading	invoice
					charges	cost
					A	B	c=a/b*100
	parts managers&office employees salary				41000	100,000	41.00%
	other overhead				20,000	100,000	20.00%
	total percentage				61000		61.00%
	add:profit margin						29%
	material loading percentage						90.00%
	Answer -	90.00%	answer
3)	Total Estimated bill
	labor charges		6 hours *42=				252.00
	Material charges:
	cost of material parts					400
	material loading charges			(400*90%)		360	760.00
	total price of labor and material						1012.00	answer