Chance. as spot wel ers for manufacturers. The following budgeted cost data for 2020 is available for Second Technicians' wages and benefits Time Charges $260,700 Material Loading Charges

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Compute the rate charged per hour of labor.
Labor rate $
GA
H
per hour
Transcribed Image Text:Compute the rate charged per hour of labor. Labor rate $ GA H per hour
Second Chance Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2020 is available for Second
Chance.
Technicians' wages and benefits
Parts manager's salary and Benefits
Office employee's salary and benefits
Other overhead
Total budgeted costs
Time
Charges
$260,700
55,300
15,800
$331,800
Material
Loading
Charges
$40,300
10,660
29,120
$80,080
The company desires a $38 profit margin per hour of labor and a 24.00% profit margin on parts. It has budgeted for 7,900 hours of
repair time in the coming year, and estimates that the total invoice cost of parts and materials in 2020 will be $416,000.
Transcribed Image Text:Second Chance Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2020 is available for Second Chance. Technicians' wages and benefits Parts manager's salary and Benefits Office employee's salary and benefits Other overhead Total budgeted costs Time Charges $260,700 55,300 15,800 $331,800 Material Loading Charges $40,300 10,660 29,120 $80,080 The company desires a $38 profit margin per hour of labor and a 24.00% profit margin on parts. It has budgeted for 7,900 hours of repair time in the coming year, and estimates that the total invoice cost of parts and materials in 2020 will be $416,000.
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