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. Boyles Body Shop repairs automobiles that have been involved in collisions. Its budget information follows: Budgeted direct labor cost $200,000 Budgeted overhead 500,000 Budgeted
. Boyles Body Shop repairs automobiles that have been involved in collisions. Its budget information follows:
Budgeted direct labor cost $200,000
Budgeted overhead 500,000
Budgeted labor rate per hour $10
Since all of Boyles technicians are paid the same rate, Boyle allocates overhead to jobs based on direct labor hours. Paul Evans brought his car to Boyle for fender repair. It took 5 hours and the new parts for the job totaled $200. If Evans was charged $500, what was the percentage of profit to the selling price?
a. 35%
b. 60%
c. 50%
d. 25%
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