Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Coronado Homes is a house cleaning service. As a special feature, Coronado Homes will supply flowers or small decorator items when they clean a home.
Coronado Homes is a house cleaning service. As a special feature, Coronado Homes will supply flowers or small decorator items when they clean a home. They use a time and material billing policy. Based on the following costs and desired profits, calculate the hourly rate for labour and the material loading charge for Coronado Homes, assuming that in 3,300 hours per year they clean 750 homes. Invoice costs per year are $214,000. Materials $ $ Labour 52,800 14,520 $ 17,120 25,680 $ Maid's salaries Office supplies Supplies Overhead on equipment Advertising costs Desired profit $ 4,356 2,541 $ 9 per hour $ 18% Calculate the labour rate that Coronado Homes uses. (Round entry to 2 decimal places, e.g. 15.25.) Labour rate Calculate the materials loading charge for Coronado Homes. (Round entry to o decimal places, e.g. 25%.) Materials loading charge Cathy, a potential new client, would like to have her home cleaned every two weeks and a large floral arrangement to be provided for the dining room table and a small arrangement for the kitchen table. Coronado Homes estimates that it will take 2 maids 4 hours to clean Cathy's home and the invoice cost for the flowers will be $54. Using the rates calculated in Parts 1. and 2, determine Cathy's bi-weekly bill. (Round entry to 2 decimal places, e.g. 15.25.) Catty's bi-weekly bill
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started