Fred Burgess Diesel Service, Inc. repairs commercial diesel generators used to

power heavy equipment and locomotive motors for the BNSF Railway. The

following budgeted cost data is available for $2021$ :

The company has budgeted for $7,200$ hours of technician time during the coming

year. It desires a $$90$ profit margin per hour of labor and a $45\%$ profit margin on

parts. It is estimated the total invoice cost of parts and materials in $2021$ will be

$$1,200,000.$

Required:

Compute the rate charged per hour of labor.

Compute the material loading charge.

Fred has received a request from BNSF Railway for an estimate to repair a diesel

generator for their Roseville Locomotive #$459.$ Fred estimates that it would take

$36$ hours of labor and $$20,600$ of parts. Compute the total estimated bill.