Dobbs Remanufacturing rebuilds spot welders for manufacturers. The following budgeted cost data for 2003 is available for Dobbs.

The company desires a \($35\) profit margin per hour of labor and a 25% profit margin on parts. It has budgeted for 7,600 hours of repair time in the coming year, and estimates that the total invoice cost of parts and materials in 2003 will be $400,000.

Instructions

(a) Compute the rate charged per hour of labor.

(b) Compute the material loading charge. (Round to three decimal places.)

(c) Lindy Corporation has requested an estimate to rebuild its spot welder. Dobbs esti- mates that it would require 40 hours of labor and \($2,500\) of parts. Compute the to- tal estimated bill.

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Time Material Charges Charges Technicians wages and benefits $228,000 Parts manager's salary and benefits $42,500 Office employee's salary and benefits 30,400 8,000 Other overhead 15,200 22,000 Total budgeted costs $273,600 $72,500