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tion 2: E22-9 Rey Custom Electronics (RCE) sells and installs complete security. computer. audio, and video systems for homes. On newly constructed homes it provides
tion 2: E22-9 Rey Custom Electronics (RCE) sells and installs complete security. computer. audio, and video systems for homes. On newly constructed homes it provides bids using time-and-material pricing. The following budgeted cost data are available. Material Loading Charges Time Charges $150,000 Technicians' wages and benefits Parts managers salary and benefits Office employee's salary and benefits Other overhead 30,000 15,000 $195,000 $34,00o 1 5,000 42,000 $91,000 Total budgeted costs The company has budgeted for o.250 hours of technician time during the coming year It desires a $38 profit margin per hour of labor and an 80% profit on parts. It estimates the total invoice cost of parts and materials in 2017 will be $700,00o. Instructions (a) Compute the rate charged per hour of labor (b) Com (c) RCE has pute the material loading percentage. just received a request for a bid from Buil Builders on a $1.200,000 new company estimates that it would require 80 hours of labor and $40,000 of parts. Compute the total estimated bill
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