Question
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 | $204,400 | - | ||||||
| Parts manager's salary and benefits | - | $40,700 | ||||||
| Office employee's salary and benefits | 58,400 | 12,340 | ||||||
| Other overhead | 29,200 | 20,800 | ||||||
| Total budgeted costs | $292,000 | $73,840 | ||||||
The company desires a $35 profit margin per hour of labor and a 26.00% profit margin on parts. It has budgeted for 7,300 hours of repair time in the coming year, and estimates that the total invoice cost of parts and materials in 2020 will be $416,000.
What is the labor rate per hour ___
Material Loading percentage ___
Total estimated Bill ____
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Managerial Accounting Tools for business decision making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
6th Edition
978-0470477144, 1118096894, 9781118214657, 470477148, 111821465X, 978-1118096895
