P22-3B Armstrong Bike Repair Shop has budgeted the following time and material for 2017 Armstrong Bike Repair Shop Budgeted Costs for the Year 2017 Time Material Charges Loading Charges Shop employees' wages and benefits $36,000 Parts supervisor's salary and benefits $20,000 Office employee's salary and benefits 15,000 10,000 Overhead (supplies, depreciation, advertising, utilities) 19.000 15,000 Total budgeted costs $70,000 $45,000 Armstrong budgets 2,500 hours of repair time in 2017 and will bill a profit of $5 per labor hour along with a 15% profit markup on the invoice cost of parts. The estimated invoice cost for parts to be used is $75,000. On January 5, 2017. Armstrong is asked to submit a price estimate to fix a Superior Mountain bike. Armstrong estimates that this job will consume 4 hours of labor and $200 in parts Instructions (a) Compute the labor rate for Armstrong Bike Repair Shop for the year 2017 (b) Compute the material loading charge percentage for Armstrong Bike Repair Shop for the year 2017 (c) Prepare a time-and-material price quotation for fixing the Superior Mountain bike (a) Computation of Labor Rate Hourly Labor Rate for Repairs: Total Cost Total Hours Per Hr Chge + 2,500 Overhead Costs: + + 2,500 2.500 2,500 2,500 Rate Charged per Hour of Labor (b) Computation of Material Loading Charge Material Loading Charge Total Invoice Cost, Parts & Materials Material Loading Percentage Overhead Costs: Parts Supervisor Salary & Benefits Parts Employee Salary & Benefits + + 111111 + Other Overhead Total Profit Margin Material Loading Percentage 15% (c) Price Quotation for Time & Material Armstrong Bike Repair Shop Time & Material Price Quotation Job: Fix Superior Mountain Bike Labor Charge: Material Charges: Cost of Parts & Materials Material Loading Charge Total Price of Labor & Material