Question
e8.10 Wassons Classic Cars restores classic automobiles to showroom status. Budgeted data for the current year are as follows. Time Charges Material Loading Charges Restorers'
e8.10
Wassons Classic Cars restores classic automobiles to showroom status. Budgeted data for the current year are as follows.
Time Charges | Material Loading Charges | ||||||||
Restorers' wages and fringe benefits | $294,000 | ||||||||
Purchasing agent's salary and fringe benefits | $69,150 | ||||||||
Administrative salaries and fringe benefits | 70,000 | 20,800 | |||||||
Other overhead costs | 28,000 | 77,100 | |||||||
Total budgeted costs | $392,000 | $167,050 |
The company anticipated that the restorers would work a total of 14,000 hours this year. Expected parts and materials were $1,285,000. In late January, the company experienced a fire in its facilities that destroyed most of the accounting records. The accountant remembers that the hourly labor rate was $71 and that the material loading charge was 84%.
Determine the profit margin per hour on labor. (Round intermediate calculations to 2 decimal places, e.g. 10.25 and final answer to 0 decimal places, e.g. 10.)
Profit margin on labor | $ | per hour |
eTextbook and Media
Determine the profit margin on materials. (Round intermediate calculations to 2 decimal places, e.g. 10.25% and final answer to 0 decimal places, e.g. 10%.)
Profit margin on materials | % |
Determine the total price of labor and materials on a job that was completed after the fire that required 150 hours of labor and $55,500 in parts and materials.
Total price | $ |
___________
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