Presented below are data for an electrical repair shop for next year. Time charge Material loading charge Wages $250,000 140,000 Fringe benefits 100,000 60,000 Overhead 50,000 100,000 The rate charge per hour of labor is $70. The material loading charge is 40% of invoice cost of parts and materials. The shop estimates that 10,000 labor hours will be worked next year and the invoice cost of expected parts and materials was 2,000,000. 1. Calculate the desired profit margin per hour of labor. 2. If the shop repairs a TV that takes 2.5 hours to repair and uses parts of $200, compute the bill for this job
Presented below are data for an electrical repair shop for next year. Time charge Material loading charge Wages $250,000 140,000 Fringe benefits 100,000 60,000 Overhead 50,000 100,000 The rate charge per hour of labor is $70. The material loading charge is 40% of invoice cost of parts and materials. The shop estimates that 10,000 labor hours will be worked next year and the invoice cost of expected parts and materials was 2,000,000. 1. Calculate the desired profit margin per hour of labor. 2. If the shop repairs a TV that takes 2.5 hours to repair and uses parts of $200, compute the bill for this job
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...
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