Question

Question 9 View Policies Current Attempt in Progress 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 Material Time Loading Charges Charges Labor wages (5900 hours) $237770 Supervisor's salary $61000 Clerical and accountant wages 63130 4000 Irrigation supplies manager 41000 Overhead 54280 22050 Total $355180 $128050 Waterways has budgeted for 5900 labor hours. It desires a $13 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 $650000. Compute the rate per hour of labor. (Round answer to 2 decimal places, e.g. 52.75.) Labor rate $ per hour e Textbook and Media

Answer 1

1)	Rate charged per hour of labor
					time	budgeted	rate
					charges=a	hrs=b	c=a/b
	labor wages				237,770	5,900	40.30
	clercial & accountant wages				63,130	5,900	10.70
	overhead				54,280	5,900	9.20
	total budgeted costs				355,180	5,900	60.20
	Add:Profit margin						13.00
							133.40	Rate charged per hr hour
	Answer=	$133.40
2)	Material loading percentage
					material	total	%
					loading	invoice
					charges	cost
					A	B	c=a/b*100
	Supervisor Salary and accountant wages				65000	650,000	10.00%
	irrigation supplies manager				41,000	650,000	6.31%
	overhead				22,050	650,000	3.39%
	total percentage				128050		19.70%
	add:profit margin						16%
	material loading percentage						35.70%
	Answer -	35.70%	answer
3)	Total Estimated bill
	labor charges		490*133.40				65366.00
	Material charges:
	cost of material parts					82,000
	material loading charges			(82000*35.70%)		29274	111274.00
	total estimated bid						176640.00	answer