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R & H Appliance provides repair services for all makes and models of home appliances. R & H Appliance charges customers for labor on each
R & H Appliance provides repair services for all makes and models of home appliances. R & H Appliance charges customers for labor on each job at a rate of $88 per hour. The labor rate is high enough to cover actual technician wages of $24 per hour, to cover shop overhead (allocated at a cost of $21 per hour), and to provide a profit. The company charges the customer "at cost" for parts and materials. A recent customer job consisted of $49 in parts and materials and 5 hours of technician time. 1. What was R & H Appliance's cost for this job? Include shop overhead in the cost calculation. 2. How much was charged to the customer for this repair job? 1. What was R & H Appliance's cost for this job? Include shop overhead in the cost calculation. Administrative expenses Direct labor Direct materials Shop overhead Total job cost
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