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Rey 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

Rey 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.

Time Charges Material Loading Charges
Technicians' wages and benefits $132,600 -
Parts manager's salary and benefits - $33,100
Office employee's salary and benefits 25,500 18,840
Other overhead 13,770 44,520
Total budgeted costs $171,870 $96,460

The company has budgeted for 5,100 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 2020 will be $742,000.

Questions:

Compute the rate charged per hour of labor. Labor rate $____ per hour

Compute the material loading percentage

RCE has just received a request for a bid from Buil Builders on a $1,200,000 new home. The company estimates that it would require 80 hours of labor and $40,000 of parts. Compute the total estimated bill.

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