Question
All Bright Appliance provides repair services for all makes and models of home appliances. All Bright Appliance charges customers for labour on each job at
All Bright Appliance provides repair services for all makes and models of home appliances. All Bright Appliance charges customers for labour on each job at a rate of $55 per hour. The labour rate is high enough to cover actual technician wages of $27 per hour and shop overhead (allocated at a cost of $16 per hour), and to provide a profit. All Bright Appliance charges the customer "at cost" for parts and materials. A recent customer job consisted of $46 in parts and materials and two hours of technician time. 1. What was All Bright Appliance's cost for this job? Include shop overhead in the cost calculation. 2. How much was charged to the customer for this repair job? 1. What was All Bright Appliance's cost for this job? Include shop overhead in the cost calculation. Direct materials Direct labour Shop overhead Total job cost 2. How much was charged to the customer for this repair job? Direct materials Labour Billed to customer
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