Bud's Auto Bodj Shop has budgeted the following time and material for 2002.

Bud's budgets M)00 hours of repair time in 2002. It will bill a profit of $7 per labor hour along with a 40% profit markup on the invoice cosl ol parts.
On January 10, 2002, Bud's is asked to submit a price estimate for the repair of a 1999 Chevrolet Bla/er that was damaged in a head-on collision. Bud's estimates that this repair will consume M hours of labor and $4,200 in parts and materials

Instructions

(a) Compute the labor rate for Bud's Auto Bock Shop for the year 2002.

(b) Compute the material loading charge rate for Buds Auto Body Shop for the year 2002.
(Round to 3 decimal places.)

(c) Prepare a lime and material price quotation for the repair of the 1999 Blazer.

Transcribed Image Text:

BUD'S AUTO BODY SHOP Budgeted Costs for the Year 2002 Time Charges Material Charges Shop employees' wages and benefits Parts manager's salary and benefits $108,000 $ 23,600 Office employee's salary and benefits 21.000 12,000 Invoice cost of parts used 200,000 Overhead (supplies, depreciation, advertising, utilities) 24,600 15,000 Total budgeted costs $153,600 $250,600