Chris's Classic Cars restores classic automobiles to showroom status. Budgeted data for the current year are:

The company anticipated that the restorers would work a total of 12,000 hours this year. Expected parts and materials were $1,260,000.
In late January, the company experienced a fire in its facilities that destroyed most of the accounting records. The accountant remembers that the hourly labor rate was $68.80 and that the material loading charge was 93.10%.

Instructions
(a) Determine the profit margin per hour on labor.
(b) Determine the profit margin on materials.
(c) Determine the total price of labor and materials on a job that was completed after the fire that required 150 hours of labor and $60,000 in parts and materials.

Transcribed Image Text:

Material Loading Charges Tme Charges $270,000 Restorers' wages and fringe benefits Purchasing agents salary and fringe Administrative salaries and fringe benefits Other overhead costs 54,000 21,600 $345,600 67,500 21,960 75,600 $165,060 Total budgeted costs