Docs Auto Body has budgeted the costs of the following repair time and parts activities for 2009:

Doc's budgets 6,000 hours of repair time in 2009. A profit margin of $7 per labour hour will be added to the hourly rate for repairs, and a 50% profit markup will be added to the cost of parts used.

On January 10, 2009, Doc's is asked to submit a price quotation for the repair of a 2007 Chevrolet Blazer that was damaged in a head-on collision. Doc's Auto estimates that this repair will consume 61 hours of labour and $4,200 in parts.

Required:

A. Calculate the labour rate to be charged to customers by Doc's Auto Body for 2009.

B. Calculate the parts mark-up percentage to be added to the cost of parts used by Doc's Auto Body for 2009. (Round to three decimal places.)

C. Prepare a time and parts price quotation for the repair of the 2007 Chevrolet Blazer.

\begin{tabular}{|c|cr|rr|} \cline { 2 - 5 } \multicolumn{1}{c|}{} & \multicolumn{2}{|c|}{ Repair Time Activity } & \multicolumn{2}{c|}{ Parts Activity } \\ \hline Shop employees' wages and benefits & $ & 111,000 & $ & - \\ \hline Parts manager's salary and benefits & $ & - & $ & 26,600 \\ \hline Office employee's salary and benefits & $ & 21,000 & $ & 12,000 \\ \hline Cost of parts used & $ & - & $ & 200,000 \\ \hline Overhead (supplies, amort, ads, utilities) & $ & 24,600 & $ & 15,000 \\ \hline \hline Total budgeted costs & $ & 156,600 & $ & 253,600 \\ \hline \end{tabular}