Blossom's Klassic Kars restores classic automobiles to showroom status. Budgeted data for the current year are as follows: Restorers' wages and fringe benefits Purchasing agent's salary and fringe benefits Administrative salaries and fringe benefits Other overhead costs Total budgeted costs Time Charges $200,000 40,000 15,000 $255,000 (a) Material Loading Charges $60,000 18,000 66,000 $144,000 The company anticipated that the restorers would work a total of 10,000 hours this year and expected that parts and materials cost $1,200,000. In late January, the company experienced a fire in its facilities that destroyed most of the accounting records. The accountant remembers that the hourly labour rate was $67 and that the material loading charge was 90.00%. Determine the profit margin per hour on labour. (Round answer to 2 decimal places, e.g. 5.25.)
Blossom's Klassic Kars restores classic automobiles to showroom status. Budgeted data for the current year are as follows: Restorers' wages and fringe benefits Purchasing agent's salary and fringe benefits Administrative salaries and fringe benefits Other overhead costs Total budgeted costs Time Charges $200,000 40,000 15,000 $255,000 (a) Material Loading Charges $60,000 18,000 66,000 $144,000 The company anticipated that the restorers would work a total of 10,000 hours this year and expected that parts and materials cost $1,200,000. In late January, the company experienced a fire in its facilities that destroyed most of the accounting records. The accountant remembers that the hourly labour rate was $67 and that the material loading charge was 90.00%. Determine the profit margin per hour on labour. (Round answer to 2 decimal places, e.g. 5.25.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
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A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Blossom's Klassic Kars restores classic automobiles to showroom status. Budgeted data for the current year are as follows:
Restorers' wages and fringe benefits
Purchasing agent's salary and fringe benefits
Administrative salaries and fringe benefits
Other overhead costs
Total budgeted costs
(a)
Time Charges
$200,000
40,000
15,000
$255,000
The company anticipated that the restorers would work a total of 10,000 hours this year and expected that parts and materials would
cost $1,200,000.
Profit margin
In late January, the company experienced a fire in its facilities that destroyed most of the accounting records. The accountant
remembers that the hourly labour rate was $67 and that the material loading charge was 90.00%.
$
Material Loading
Charges
$60,000
18,000
66,000
$144,000
Determine the profit margin per hour on labour. (Round answer to 2 decimal places, e.g. 5.25.)
per hour
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