Exercise 21-09 a-c (Video) Waterway Custom Electronics (WCE) sells and installs complete security, computer, audio, and video systems for homes. On newly constructed homes it provides bids using time-and-material pricing. The following budgeted cost data are available. Material Loading Charges Time Charges Technicians' wages and benefits $128,800 Parts manager's salary and benefits Office employee's salary and benefits 25,200 Other overhead 13,440 Total budgeted costs $167,440 $33,500 17,880 44,040 $95,420 The company has budgeted for 5,600 hours of technician time during the coming year. It desires a $39 profit margin per hour of labor and an 80% profit on parts. It estimates the total invoice cost of parts and materials in 2020 will be $734,000. Compute the rate charged per hour of labor. (Round answer to 2 decimal places, e.g. 10.50.) Labor rate 68.90 per hour $ LINK TO TEXT VIDEO: SIMILAR EXERCISE Compute the material loading percentage. Material loading percentage % LINK TO TEXT VIDEO: SIMILAR EXERCISE RCE has just received a request for a bid from Buil Builders on a $1,204,000 new home. The company estimates that it would require 80 hours of labor and $38,400 of parts. Compute the total estimated bill. Total estimated bill Exercise 21-11 a-b (Video) Sunland Company's Small Motor Division manufactures a number of small motors used in household and office appliances. The Household Division of Sunland then assembles and packages such items as blenders and juicers. Both divisions are free to buy and sell any of their components internally or externally. The following costs relate to small motor LN233 on a per unit basis. Fixed cost per unit $5.35 Variable cost per unit $11.30 Selling price per unit $34.30 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. (Round answer to 2 decimal places, e.g. 10.50.) Minimum transfer price per unit $ LINK TO TEXT VIDEO: SIMILAR EXERCISE 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. (Round answer to 2 decimal places, e.g. 10.50.) Minimum transfer price $