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Pronghorn Custom Electronics (RCE) sells and installs complete security, computer, audio, and video systems for homes. On newly constructed homes it provides bids using

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Pronghorn Custom Electronics (RCE) sells and installs complete security, computer, audio, and video systems for homes. On newly constructed homes it provides bids using time-and-material pricing. The following budgeted cost data are available. Material Time Loading Charges Charges Technicians' wages and benefits $156,000 Parts manager's salary and benefits $35,360 Office employee's salary and benefits 39,000 15,600 Other overhead 26,000 43,680 Total budgeted costs $221,000 $94,640 The company has budgeted for 6,500 hours of technician time during the coming year. It desires a $38 profit margin per hour of labor and an 80% profit on parts. It estimates the total invoice cost of parts and materials in 2022 will be $728,000.

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