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Use time-and-material pricing to determine bill. E8-10 Wasson's Classic Cars restores classic automobiles to showroom status. Budgeted data for the current year are as follows.
Use time-and-material pricing to determine bill. E8-10 Wasson's Classic Cars restores classic automobiles to showroom status. Budgeted data for the current year are as follows. (LO 3), AP Material Loading ChargesCharges Time torers' wages and fringe benefits Purchasing agent's salary and fringe benefits Administrative salaries and fringe benefits Other overhead costs Res $270,000 67,500 21,960 77,490 $348,000 $166,950 54,000 24,000 Total budgeted costs Exercises 3 The company anticipated that the restorers would work a total of 12,000 hours this year. Expected parts and materials were $1,260,000 In late January, the company experienced a fire in its facilities that destroyed most of the accounting records. The accountant remembers that the hourly labor rate was $70.00 and that the material loading charge was 83.25%. Instructions (a) Determine the profit margin per hour on labor. (b) Determine the profit margin on materials. (c) Determine the total price of labor and materials on a job that was completed after the fire that required 150 hours of labor and $60,000 in parts and materials
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