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Second Chance Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2020 is available for Second Chance. Time Charges Material Loading Charges
Second Chance Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2020 is available for Second Chance.
Time Charges | Material Loading Charges | |||||||
---|---|---|---|---|---|---|---|---|
Technicians' wages and benefits | $237,000 | - | ||||||
Parts manager's salary and benefits | - | $39,100 | ||||||
Office employee's salary and benefits | 71,100 | 8,900 | ||||||
Other overhead | 39,500 | 19,200 | ||||||
Total budgeted costs | $347,600 | $67,200 |
The company desires a $34 profit margin per hour of labor and a 21.00% profit margin on parts. It has budgeted for 7,900 hours of repair time in the coming year, and estimates that the total invoice cost of parts and materials in 2020 will be $384,000.
(a)
Compute the rate charged per hour of labor.
Labor rate | $enter the rate charged per hour of labor in dollars. | per hour |
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