Question
Flint Custom Electronics (RCE) sells and installs complete security, computer, audio, and video systems for homes. On newly constructed homes it provides bids using time-and-material
Flint Custom Electronics (RCE) 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.
Time Charges | Material Loading Charges | ||||||
---|---|---|---|---|---|---|---|
Technicians' wages and benefits | $177,000 | - | |||||
Parts manager's salary and benefits | - | $40,120 | |||||
Office employee's salary and benefits | 44,250 | 17,700 | |||||
Other overhead | 22,125 | 49,560 | |||||
Total budgeted costs | $243,375 | $107,380 |
The company has budgeted for 7,375 hours of technician time during the coming year. It desires a $38 profit margin per hour of labor and an 80% profit on parts. It estimates the total invoice cost of parts and materials in 2022 will be $826,000.
(a)
Compute the rate charged per hour of labor. (Round answer to 2 decimal places, e.g. 10.50.)
Labor rate | $enter the labour rate per hour in dollars rounded to 2 decimal places | per hour |
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