sel generators used to power heavy equipment and locomotive motors for the BNSF Railway. The following budgeted cost data is available for 2021: Technicians' wages and benefits Parts manager's salary and benefits Office manager's salary and benefits Other overhead Total budgeted costs Time Charges $610,000 72,000 38,000 $720,000 Material Charges Required: 1. Compute the rate charged per hour of labor. 2. Compute the material loading charge. $ 90,000 18,000 105,000 $213,000 The company has budgeted for 8,000 hours of technician time during the coming year. It desires a $75 profit margin per hour of labor and a 45% profit margin on parts. It is estimated the total invoice cost of parts and materials in 2021 will be $1,200,000. 3. Fred has received a request from BNSF Railway for an estimate to repair a diesel generator for their Roseville Locomotive #459. Fred estimates that it would take 24 hours of labor and $10,300 of parts. Compute the total estimated bill.
sel generators used to power heavy equipment and locomotive motors for the BNSF Railway. The following budgeted cost data is available for 2021: Technicians' wages and benefits Parts manager's salary and benefits Office manager's salary and benefits Other overhead Total budgeted costs Time Charges $610,000 72,000 38,000 $720,000 Material Charges Required: 1. Compute the rate charged per hour of labor. 2. Compute the material loading charge. $ 90,000 18,000 105,000 $213,000 The company has budgeted for 8,000 hours of technician time during the coming year. It desires a $75 profit margin per hour of labor and a 45% profit margin on parts. It is estimated the total invoice cost of parts and materials in 2021 will be $1,200,000. 3. Fred has received a request from BNSF Railway for an estimate to repair a diesel generator for their Roseville Locomotive #459. Fred estimates that it would take 24 hours of labor and $10,300 of parts. Compute the total estimated bill.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hi there!
I already completed this question but i want to see if my work is correct. please make sure that the numbers are similar though. other experts solve similar problems with different numbers and i cant see whether im correct or not because the numbers dont align.
Thanks for everything!
Transcribed Image Text:Fred Burgess Diesel Service, Inc. repairs commercial diesel generators used to
power heavy equipment and locomotive motors for the BNSF Railway. The
following budgeted cost data is available for 2021:
Technicians' wages and benefits
Parts manager's salary and benefits
Office manager's salary and benefits
Other overhead
Total budgeted costs
Time
Charges
$610,000
72,000
38,000
$720,000
Material
Charges
$ 90,000
18,000
105,000
$213,000
The company has budgeted for 8,000 hours of technician time during the coming
year. It desires a $75 profit margin per hour of labor and a 45% profit margin on
parts. It is estimated the total invoice cost of parts and materials in 2021 will be
$1,200,000.
Required:
1. Compute the rate charged per hour of labor.
2. Compute the material loading charge.
3. Fred has received a request from BNSF Railway for an estimate to repair a diesel
generator for their Roseville Locomotive #459. Fred estimates that it would take
24 hours of labor and $10,300 of parts. Compute the total estimated bill.
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