Jimenez's Electrical Repair has decided to price its work on a time and materials basis. It estimates

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Jimenez's Electrical Repair has decided to price its work on a time and materials basis. It estimates the following costs for the year related to labor.

Technician wages and benefits \($100,000\) Office employee's salary and benefits $ 40,000 Other overhead $ 80,000 Jiminez desires a profit margin of \($10\) per labor hour and budgets 5,000 hours of repair time for the year. The office employee salaries, benefits, and other overhead costs should be divided evenly between time charges and materials charges. Jimenez's labor charge per hour would be:

(a) \($42\).

(c) \($32.

(b)\) \($34\).

(d) \($30.

\)

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Managerial Accounting Tools For Business Decision Making

ISBN: 9780471413653

2nd Canadian Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly

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