Question

5.200 24UR The company desin eted for 7.600 hours of repair Total budgeted costs $281.200 $75,500 "pany desires a $30 profit margin per hour of labor and a 20% profit margin on parts. It has budg- Po hours of repair time in the coming year, and estimates that the total invoice cost of parts and materials in 2020 will be $400,000. Instructions a. Compute the rate charged per hour of labor. Compute the material loading percentage. (Round to three decimal places.) c. Pace Corporation has reque Corporation has requested an estimate to rebuild its spot welder. Second Chance esamates that would require 40 hours of labor and $2,000 of parts. Compute the total estimated bill. Use time-and-ma determine bill. (LO 3), AP Service Rey Custom Electronics (RCE) sells and installs complete security, com- 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 Time Loading Charges Charges Technicians' wages and benefits $150,000 Parts manager's salary and benefits $34.000 Office employee's salary and benefits 30,000 15,000 Other overhead 15,000 42,000 Total budgeted costs $195,000 $91,000

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Answer 1

1 per hour labor

• technician salaries 150000 /6250 = 24/hour
• office employee salaries 30000 /6250 = 4.8/hour
• other overhead = 15000/6250 = 2.4/hour
• TOtal = $31.2

2 Material loading %

Parts Managers' salary $ 34,000 is 4.86% of $ 700,000

Office employee's salaries $ 15,000 is 2.14% of $ 700,000

Other overhead $ 42,000 is 6% of $ 700,000

Given Profit margin 80% given

Material Loading Percentage = 4.86+2.14+6++80 = 93%

3 labor 80 hours @69.2 (which is 31.2 +38)= 5536

material = 40000

loading is 93% of 40000 = 37200

total 82736