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E9.23 (LO 5) Service Padong Remanufacturing rebuilds spot welders for manufacturers. The following budgeted cost data for 2022 are available for Padong: Technicians' wages
E9.23 (LO 5) Service Padong Remanufacturing rebuilds spot welders for manufacturers. The following budgeted cost data for 2022 are available for Padong: Technicians' wages and benefits Parts manager's salary and benefits Time Charges Material Loading Charges $228,000 Office employee's salary and benefits 38,000 Other overhead Total budgeted costs 15,200 $281,200 $42,500 9,000 24,000 $75,500 The company wants a $30 profit margin per hour of labour and a 20% profit margin on parts. It has budgeted for 7,600 hours of repair time in the coming year and estimates that the total invoice cost of parts and materials in 2022 will be $400,000. Instructions a. Calculate the rate charged per hour of labour. b. Calculate the material loading percentage to three decimal places. c. Lindy Corporation has asked for an estimate on rebuilding its spot welder. Padong estimates that it would require 40 hours of labour and $2,000 in parts. Calculate the total estimated bill. Use time-and-material pricing to determine bill.
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