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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
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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