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Question 17 Rey Custom Electronics (RCE) sells and installs complete security, computer, audio, and video systems for homes. On newly constructed homes it provides bids using time- and-material pricing. The following budgeted cost data are available. Material Loading Charges Time Charges Technicians' wages and benefits $ 133,653 Parts manager's salary and benefits Office employee's salary and benefits 23,045 Other overhead 15,133 Total budgeted costs $ 171,831 $ 33,200 17,620 43,633 $ 94,453 The company has budgeted for 5,310 hours of technician time during the coming year. It desires a $ 38.24 profit margin per hour of labor and an 80% profit on parts. It estimates the total invoice cost of parts and materials in 2017 will be $ 726,000 . Compute the rate charged per hour of labor. (Round answer to 2 decimal places, e.g. 10.50.) Labor rate per hour Compute the material loading percentage. (Round answer to 2 decimal places, e.g. 10.50.) Material loading percentage

Answer 1

1
Budgeted cost per labor hour	32.36	=171831/5310
Add: Profit margin	38.24
Labor rate	70.60	per hour
2
Material loading charges	13.01%	=94453/726000
Add: Profit on parts	80.00%
Material loading percentage	93.01%
3
Labor charges	5648.00	=80*70.60
Materials parts	42000.00
Material loading charges	39064.20	=42000*93.01%
Total estimated bill	86712.20
If Materials loading percentage is rounded to 93%,
Total estimated bill	86708.00