HH Auto Repair reports the following information for the coming year.Labor rate, including fringe benefitsAnnual labor hoursAnnual materials (parts) purchasesAnnual overhead costs:53 per labor hour11,700 bours$2,170,000Materials purchasing, handling, and storageother overhead (depreciation, insurance, taxes, rent)Target profit margin (on both labor and materials)$ 347, 200$ 191,90030 11. Compute the price (rate) per hour of direct labor. (Round your answer to 2 decimal places)2. Compute the materials markup (in %).3. What price should the company quote for a job requiring three labor hours and $750 in parts? (Round your answer to 2 decimalplaces.)1. Total labor rate per hour2. Materials markup3. Total price quote

Labor rate per hour is the charge of labor for one hour of work. Markup is the additional amount…

HH Auto Repair reports the following information for the coming year Labor rate, including fringe benetits Annual labor hours Annual materials (parts) purchases Annual overhead costai Materials purchasing, handling, and storage Other overhead (depreciation, insurance, taxes, rent) Target profit margin (on both labor and materials) 53 per labor hour 11,700 hours $2,170,000 $ 347,200 191,900 30 1 1. Compute the price (rate) per hour of direct labor. (Round your answer to 2 decimal places) 2. Compute the materials markup (In %). 3. What price should the company quote for a job requiring three labor hours and $750 in parts? (Round your answer to 2 decinal places.) 1. Total labor rate per hour 2. Matorials markup 3. Total price quole

HH Auto Repair reports the following information for the coming year Labor rate, including fringe benetits Annual labor hours Annual materials (parts) purchases Annual overhead costai Materials purchasing, handling, and storage Other overhead (depreciation, insurance, taxes, rent) Target profit margin (on both labor and materials) 53 per labor hour 11,700 hours $2,170,000 $ 347,200 191,900 30 1 1. Compute the price (rate) per hour of direct labor. (Round your answer to 2 decimal places) 2. Compute the materials markup (In %). 3. What price should the company quote for a job requiring three labor hours and $750 in parts? (Round your answer to 2 decinal places.) 1. Total labor rate per hour 2. Matorials markup 3. Total price quole

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 7EA: A company estimates its manufacturing overhead will be $750,000 for the next year. What is the...

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A company estimates its manufacturing overhead will be $750,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? Budgeted direct labor hours: 60,000 Budgeted direct labor expense: $1,500,000 Estimated machine hours: 100,000
HH Auto Repair reports the following information for the coming year. $ Labor rate, including fringe benefits Annual labor hours 55 per labor hour 11,900 hours $2,190,000 Annual materials (parts) purchases Annual overhead costs: Materials purchasing, handling, and storage $ 394,200 Other overhead (depreciation, insurance, taxes, rent) Target profit margin (on both labor and materials) $ 178,500 32 % 1. Compute the price (rate) per hour of direct labor. (Round your answer to 2 decimal places.) 2. Compute the materials markup (in %). 3. What price should the company quote for a job requiring four labor hours and $770 in parts? (Round your answer to 2 places.) 1. Total labor rate per hour 2. Materials markup % 3. Total price quote
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Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost Cost per Repair-Hour per Month Wages and salaries Parts and supplies $ 21,200 $15.00 $ 7.80 $ 0.55 $ 1.80 $ 2,740 $ 5,780 $ 4,610 $ 3,840 Equipment depreciation Truck operating expenses Rent Administrative expenses $ 0.40 For example, wages and salaries should be $21,200 plus $15.00 per repair-hour. The company expected to work 2,500 repair-hours in May, but actually worked 2,400 repair-hours. The company expects its sales to be $47.00 per repair-hour. Required: Compute the company's activity variances for May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Jake's Roof Repair Activity Variances For the Month Ended May 31 Revenue Expenses: Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses Total expense Net…
HH Auto Repair reports the following information for the coming year. Direct labor rate, including fringe benefits . $36 per DLH Annual direct labor hours 10,000 hours Annual direct materials (parts) purchases $2,000,000 Annual overhead costs: Materials purchasing, handling, and storage $360,000 Non-materials related overhead (depreciation, insurance, taxes, rent) . $170,000 Target profit margin (on both labor and materials) 32% 1. Compute the rate per hour of direct labor (in $). 2. Compute the materials markup (in %). 3. What price should the company quote for a job requiring four direct labor hours and $580 in parts?
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Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost Cost per per Month $ 21,200 Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Repair-Hour $15.00 $ 7.50 $ 0.50 $ 1.60 $ 2,770 $ 5,710 $ 4,680 $ 3,870 Rent Administrative expenses $ 0.40 For example, wages and salaries should be $21,200 plus $15.00 per repair-hour. The company expected to work 2,800 repair-hours in May, but actually worked 2,700 repair-hours. The company expects its sales to be $44.00 per repair-hour. Required: Compute the company's activity variances for May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
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Jake's Roof Repair provided the following data concerning its costs: Fixed Cost Cost per per Month Repair-Hour Wages and salaries Parts and supplies Equipment depreciation $ 21,200 $ 15.00 $ 7.10 $ 2,770 $ 0.45 Truck operating expenses Rent $ 5,720 $ 1.60 $ 4,640 $ 3,880 $ 0.50 Administrative expenses For example, wages and salaries should be $21,200 plus $15.00 per repair-hour. The company expected to work 2,800 repair-hours in May but actually worked 2,700 repair-hours. The company expects its sales to be $54.00 per repair-hour. Required: Compute the company's activity variances for May. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero variance). Input all amounts as positive values. Revenue Expenses: Jake's Roof Repair Activity Variances For the Month Ended May 31 Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses Total expenses Net…
Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost per Month Cost per Repair-Hour $ Wages and salaries Parts and supplies Equipment depreciation $ Truck operating expenses $ $ Administrative expenses $ Rent 21,200 2,770 5,760 4,680 3,840 $ 15.00 $ 7.80 $ 0.55 $ 1.50 $ 0.70 For example, wages and salaries should be $21,200 plus $15.00 per repair-hour. The company expected to work 2,500 repair-hours in May, but actually worked 2,400 repair-hours. The company expects its sales to be $50.00 per repair-hour. Required: Compute the company's activity variances for May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)