Question
HH Electric reports the following information. Direct labor rate $ 30 per DLH Non-materials-related overhead $ 15 per DLH Materials-related overhead 5% of direct materials
HH Electric reports the following information.
| Direct labor rate | $ 30 | per DLH |
|---|---|---|
| Non-materials-related overhead | $ 15 | 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 $580 in materials?
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
