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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