Question #$5$

Claude Reese Custom Car Restoration, Inc. specializes in frame off restorations of

the iconic $1955-1957$ Ford Thunderbird. The following budgeted cost data is

available for $2023$:

The company has budgeted for $8,000$ hours of restoration time during the coming

year. It desires a $$125$ profit margin per hour of labor and a $60\%$ profit margin on

parts. It is estimated the total invoice cost of parts and materials in $2023$ will be

$$985,000.$

Required:

Compute the rate charged per hour of labor.

Compute the material loading charge.

Claude Reese has just received a request from Jay Leno for an estimate to do a

frame off restoration of his $1957$ Thunderbird. Claude estimates it will take $355$

hours of labor and $$92,600$ of parts. Compute the total estimated bill.