St-Cyr's Electronic Repair Shop has budgeted the following time and material for 2016:

St-Cyr's budgets 5,000 hours of repair time in 2016 and will bill a profit of $5 per labour hour along with a 30% profit markup on the invoice cost of parts.
On January 5, 2016, St-Cyr's is asked to submit a price estimate to fix a 72-inch big-screen TV. St-Cyr's estimates that this job will consume 20 hours of labour and $500 in parts and materials.
Instructions
(a) Calculate the labour rate for St-Cyr's Electronic Repair Shop for the year 2016.
(b) Calculate the material loading-charge percentage for St-Cyr's Electronic Repair Shop for the year 2016.
(c) Prepare a time-and-material price quotation for fixing the big-screen TV.

Transcribed Image Text:

Time Charges aterial Charges Shop employees' wages and benefits Parts manager's salary and benefits Office employee's salary and benefits Invoice cost of parts used Overhead (supplies, amortization, advertising, utilities) Total budgeted costs $108,000 20,000 26,000 25,400 13,600 100,000 18,000 $157,000 $154,000