Forrest Painting Service has budgeted the following time and material for 2019:

 

Forrest budgets 4,000 hours of paint time in 2019 and will charge a profit of $12 per hour, in addition to a 25% markup on the cost of paint.

On February 15, 2019, Forrest is asked to prepare a price estimate to paint a building. Forrest estimates that this job will take 12 labor hours and $500 in paint.

Instructions

1. Compute the labor rate for 2019.

2. Compute the material loading charge rate for 2019.3.Prepare a time-and-material price estimate for painting the building.

BUDGETED COSTS FOR 2019 Time Charges $ 36,000 12,000 Painters' wages and benefits Service manager's salary and benefits Office employee's salary and benefits Cost of paint Overhead (supplies, utilities, etc.) Total budgeted costs 16,000 $64,000 Material Charges $23,000 3,000 50,000 8,500 $84,500