Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Padong Remanufacturing rebuilds spot welders for manufacturers. The following budgeted cost data for 2020 are available for Padong: Time Charges Material Loading Charges Technicians wages

Padong Remanufacturing rebuilds spot welders for manufacturers. The following budgeted cost data for 2020 are available for Padong:

Time Charges Material Loading Charges
Technicians wages and benefits $208,440
Parts managers salary and benefits $45,305
Office employees salary and benefits 38,600 12,155
Other overhead 23,160 33,150
Total budgeted costs $270,200 $90,610

The company wants a $30 profit margin per hour of labour and a 30% profit margin on parts. It has budgeted for 7,720 hours of repair time in the coming year and estimates that the total invoice cost of parts and materials in 2020 will be $442,000.

Calculate the rate charged per hour of labour.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing A Practical Approach

Authors: Robyn Moroney, Fiona Campbell, Jane Hamilton

4th Edition

0730382648, 978-0730382645

More Books

Students also viewed these Accounting questions