Question
Gibco Service has budgeted the following time-and-material for 2019: Budgeted Costs For 2019 Time Material Charges Charges Painters' wages and benefits $54,000 Service manager's salary
Gibco Service has budgeted the following time-and-material for 2019:
Budgeted Costs For 2019 | ||||
| Time | Material | ||
|
| Charges | Charges | |
| Painters' wages and benefits | $54,000 |
|
|
| Service manager's salary and benefits |
| $44,000 |
|
| Office employee's salary and benefits | 7,400 | 6,000 |
|
| Cost of paint |
| 50,000 |
|
| Overhead (supplies, utilities, etc.) | 14,000 | 22,000 |
|
|
|
|
|
|
Gibco budgets 2,000 hours of paint time in 2019 and will charge a profit of $8 per hour on the labour rate, in addition to a 12% mark-up on the cost of paint.
On February 15, 2019, Gibco is asked to prepare a price estimate to paint a building. Gibco estimates that this job will take 25 labour hours and $900 in paint.
1.Calculate the material loading charge rate % for 2019
2. What is the planned profit for the year? Do not enter $ or commas.
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