Bramble Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2022 is available for
Question:
Bramble Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2022 is available for Bramble.
Time | Material | |||||||
---|---|---|---|---|---|---|---|---|
Technicians' wages and benefits | $266,000 | - | ||||||
Parts manager's salary and benefits | - | $40,000 | ||||||
Office employee's salary and benefits | 45,600 | 10,500 | ||||||
Other overhead | 22,800 | 28,000 | ||||||
Total budgeted costs | $334,400 | $78,500 |
The company desires a $35 profit margin per hour of labor and a 26% 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 2022 will be $400,000.
(a)
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Compute the rate charged per hour of labor.
Labor rate | $enter the labor rate per hour in dollars | per hour |
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(b)
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Compute the material loading percentage. (Round answer to 3 decimal places, e.g. 10.501%.)
Material loading percentage | enter the material loading percentage rounded to 3 decimal places % |
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10% score reduction after attempt 2
(c)
Pace Corporation has requested an estimate to rebuild its spot welder. Bramble estimates that it would require 41 hours of labor and $2,000 of parts. Compute the total estimated bill. (Round answer to 2 decimal places, e.g. 10.50.)
Total estimated bill |
Managerial Accounting Tools For Business Decision Making
ISBN: 9781119754053
9th Edition
Authors: Jerry J Weygandt, Paul D Kimmel, Jill E Mitchell