Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The answer is $1416, but I dont know how The budget for Klunker Auto Repair Shop for the year is as follows: begin{tabular}{|l|l|} hline Direct
The answer is $1416, but I dont know how
The budget for Klunker Auto Repair Shop for the year is as follows: \begin{tabular}{|l|l|} \hline Direct labor per hour & $30 \\ \hline Total labor hours & 10,000 \\ \hline Overhead costs: & \\ \hline Materials handling and storage & $10,000 \\ \hline Other(rent,utilities,depreciation,insurance) & $120,000 \\ \hline Direct materials cost & $500,000 \\ \hline \end{tabular} Klunker allocates materials handling and storage costs per dollar of direct materials cost. Other overhead is allocated based on total labor hours. In addition, Klunker adds a charge of $8 per labor hour to cover the profit margin. Tardy Trucking Co. has brought one of its trucks to Klunker for an engine overhaul. If the overhaul requires twelve labor hours and $800 parts, what price should Klunker charge Tardy for these repair servicesStep 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