computation of material loading charge

Material

Material

Loading

Total Invoice Cost.

Loading

Charges = Parts and Materials = Percentage

Overhead costs

Parts manager's salary

and benefits

Office employee's salary

and benefits

$25,400

Other overhead

Total

13,600

39.000

16.000

$55,000

=

$100,000

100.000

100,000

Profit margin

Material loading percentage

(($25,400 + $13,600) = $100,000) + ($16,000 = $100,000) + 25% = 80%]

[(Parts mgr.'s sal. & bene. + Off. emp. sal. & bene.) = Tot. cost parts & mat.) + (Other OH - Tot cost

parts & mat.) + Profit margin = Mat. loading %]

39%

16%

55%

25%

80%