Armstrong Bike Repair Shop has budgeted the following time and material for 2017.

Armstrong Bike Repair Shop Budgeted Costs for the Year 2017
		Time Charges		Material Loading Charges
Shop employees wages and benefits		$36,000
Parts supervisors salary and benefits				$20,000
Offi ce employees salary and benefits		15,000		10,000
Overhead (supplies, depreciation, advertising, utilities)		19,000		15,000
Total budgeted costs		$70,000		$45,000

Armstrong budgets 2,500 hours of repair time in 2017 and will bill a profit of $5 per labor hour along with a 15% profit markup on the invoice cost of parts. The estimated invoice cost for parts to be used is $75,000.

On January 5, 2017, Armstrong is asked to submit a price estimate to fi x a Superior Mountain bike. Armstrong estimates that this job will consume 4 hours of labor and $200 in parts.

Instructions

(a) Compute the labor rate for Armstrong Bike Repair Shop for the year 2017.

(b) Compute the material loading charge percentage for Armstrong Bike Repair Shop for the year 2017.

(c) Prepare a time-and-material price quotation for fixing the Superior Mountain bike.

(a) Computation of Labor Rate	Total Cost		Total Hours		Per Hr Chge
Hourly Labor Rate for Repairs:
				=
Overhead Costs:
				=
				=
				=
Rate Charged per Hour of Labor

(b) Computation of Material Loading Charge	Material Loading Charge		Total Invoice Cost, Parts & Materials		Material Loading Percentage
Overhead Costs:
				=
Other Overhead				=
Total
Profit Margin
Material Loading Percentage

(c) Price Quotation for Time & Material

Armstrong Bike Repair Shop Time & Material Price Quotation
Job: Fix Superior Mountain Bike
Total Price of Labor & Material