E8.8 (LO 3), AP Service Second Chance Welding rebuilds spot welders for manufacturers. The fol- lowing budgeted cost data for 2020 is available for Second Chance. Use tim determi Time Material Loading Charges Charges $228,000 Technicians' wages and benefits Parts manager's salary and benefits Office employee's salary and benefits Other overhead Total budgeted costs 38,000 15,200 $281,200 $42,500 9,000 24,000 $75,500 The company desires a $30 profit margin per hour of labor and a 20% profit margin on parts. It has budg- eted for 7,600 hours of repair time in the coming year, and estimates that the total invoice cost of parts and materials in 2020 will be $400,000. Instructions a. Compute the rate charged per hour of labor. b. Compute the material loading percentage. (Round to three decimal places.) c. Pace Corporation has requested an estimate to rebuild its spot welder. Second Chance estimates that it would require 40 hours of labor and $2,000 of parts. Compute the total estimated bill. E8.11 (LO 4), AP Writing Chen Company's Small Motor Division manufactures a number of small motors used in household and office appliances. The Household Division of Chen then assembles and packages such items as blenders and juicers. Both divisions are free to buy and sell any of their com ponents internally or externally. The following costs relate to small motor LN233 on a per unit basis. Fixed cost per unit $ 5 Variable cost per unit $11 Selling price per unit $35 Instructions a. Assuming that the Small Motor Division has excess capacity, compute the minimum acceptable price for the transfer of small motor LN233 to the Household Division. b. Assuming that the Small Motor Division does not have excess capacity, compute the minimum acceptable price for the transfer of the small motor to the Household Division. c. Explain why the level of capacity in the Small Motor Division has an effect on the transfer price