Question
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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