Question
Pharoah's Klassic Kars restores classic automobiles to showroom status. Budgeted data for the current year are as follows: Time Charges $310,200 Material Loading Charges Restorers'
Pharoah's Klassic Kars restores classic automobiles to showroom status. Budgeted data for the current year are as follows:
Time
Charges
$310,200
Material Loading
Charges
Restorers' wages and fringe benefits
Purchasing agent's salary and fringe benefits
Administrative salaries and fringe benefits
Other overhead costs
Total budgeted costs
63.360
30,360
$403,920
$69,080
23.864
74,104
$167,048
The company anticipated that the restorers would work a total of 13,200 hours this year and expected that parts and materials would cost $1,256,000.
In late January, the company experienced a fire in its facilities that destroyed most of the accounting records. The accountant remembers that the hourly labour rate was $67 and that the material loading charge was 93.00%.
Determine the profit margin per hour on labour. Determine the profit margin on materials.
Determine the total price of labour and materials on a job that was completed after the fire that required 150 hours of labour and $59,100 in parts and materials.
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