Question
HH Electric reports the following information. Direct labor rate $ 69 per DLH Non-materials-related overhead $ 41 per DLH Materials-related overhead 5% of direct materials
HH Electric reports the following information.
| Direct labor rate | $ 69 | per DLH |
|---|---|---|
| Non-materials-related overhead | $ 41 | per DLH |
| Materials-related overhead | 5% | of direct materials cost |
| Target profit margin (on both conversion and direct materials) | 20% |
a. Compute the time charge per hour of direct labor. b. Compute the materials markup percentage. c. What price should the company quote for a job requiring four direct labor hours and $632 in materials?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Accounting Tools for business decision making
Authors: kimmel, weygandt, kieso
4th Edition
978-0470117262, 9780470534786, 470117265, 470534788, 978-0470095461
