Wasson's Classic Cars restore classic automobiles to showroom status. Budgeted data for the current year are as follow:[picture] 1. Determine the profit margin per hour on labor.2. Determine the profit margin on materials.3. Determine the total price of labor and materials on a job that was completed after the fire that required 153 hours of la $56,200 in parts and materials. Exercise 22-10Wasson's Classic Cars restores classic automobiles to showroom status. Budgeted data for the current year are as followMaterialTimeLoadingChargesChargesRestorers' wages and fringe benefits$314,001Purchasing agent's salary and fringe benefits$75,709Administrative salaries and fringe benefits59,07520,200Other overhead costs20,01676,551Total budgeted costs$393,092$172.460The company anticipated that the restorers would work a total of 13,900 hours this year. Expected parts and materials$1,257,000.In late January, the company experienced a fire in its facilities that destroyed most of the accounting records. The accouremembers that the hourly labor rate was $69.28 and that the material loading charge was 83.19%.

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Answered: 1. Determine the profit margin per hour…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Wasson's Classic Cars restore classic automobiles to showroom status. Budgeted data for the current year are as follow:

[picture]

1. Determine the profit margin per hour on labor.

2. Determine the profit margin on materials.

3. Determine the total price of labor and materials on a job that was completed after the fire that required 153 hours of la $56,200 in parts and materials.

Exercise 22-10
Wasson's Classic Cars restores classic automobiles to showroom status. Budgeted data for the current year are as follow
Material
Time
Loading
Charges
Charges
Restorers' wages and fringe benefits
$314,001
Purchasing agent's salary and fringe benefits
$75,709
Administrative salaries and fringe benefits
59,075
20,200
Other overhead costs
20,016
76,551
Total budgeted costs
$393,092
$172.460
The company anticipated that the restorers would work a total of 13,900 hours this year. Expected parts and materials
$1,257,000.
In late January, the company experienced a fire in its facilities that destroyed most of the accounting records. The accou
remembers that the hourly labor rate was $69.28 and that the material loading charge was 83.19%.

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