Question
Suburban Heating, Inc., installs heating systems in new homes built in suburban Philadelphia. Jobs are priced using the time and materials method. The following predictions
Suburban Heating, Inc., installs heating systems in new homes built in suburban Philadelphia. Jobs are priced using the time and materials method. The following predictions pertain to the companys operations for the next year. |
Labor rate, including fringe benefits | $ | 21.00 | per hour | |
Annual labor hours | 10,000 | hours | ||
Annual overhead costs: | ||||
Material handling and storage | $ | 63,100 | ||
Other overhead costs | $ | 137,000 | ||
Annual cost of materials used | $ | 315,500 | ||
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Material cost | $ | 71,000 | |||||||||||||||||||||||||||||||||
Labor hours | 500 | ||||||||||||||||||||||||||||||||||
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