Suttons Electronic Repair Shop has budgeted the following time and material for 2020. SUTTONS ELECTRONIC REPAIR SHOP Budgeted Costs for the Year 2020 | | | Time Charges | | Material Loading Charges | | Shop employees wages and benefits | | $105,500 | | | | | | | Parts managers salary and benefits | | | | | | $25,400 | | | Office employees salary and benefits | | 21,500 | | | | 15,600 | | | Overhead (supplies, depreciation, advertising, utilities) | | 28,000 | | | | 20,000 | | | Total budgeted costs | | $155,000 | | | | $61,000 | | | Suttons budgets 5,000 hours of repair time in 2020 and will bill a profit of $11 per labor hour along with a 29% profit markup on the invoice cost of parts. The estimated invoice cost for parts to be used is $100,000. On January 5, 2020, Suttons is asked to submit a price estimate to fix a 72-inch flat-screen TV. Suttons estimates that this job will consume 6 hours of labor and $400 in parts. | | | |