Compute the material loading charge percentage for Sutton’s Electronic Repair Shop for the year 2020.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Sutton’s Electronic Repair Shop has budgeted the following time and material for 2020.

SUTTON’S ELECTRONIC REPAIR SHOP
Budgeted Costs for the Year 2020
    Time Charges   Material Loading Charges  
Shop employees’ wages and benefits   $118,800          
Parts manager’s salary and benefits         $25,400    
Office employee’s salary and benefits   20,520       13,990    
Overhead (supplies, depreciation, advertising, utilities)   28,080       20,200    
Total budgeted costs   $167,400       $59,590    


Sutton’s budgets 5,400 hours of repair time in 2020 and will bill a profit of $14 per labor hour along with a 21% profit markup on the invoice cost of parts. The estimated invoice cost for parts to be used is $101,000.

On January 5, 2020, Sutton’s is asked to submit a price estimate to fix a 72-inch flat-screen TV. Sutton’s estimates that this job will consume 9 hours of labor and $300 in parts.

Compute the material loading charge percentage for Sutton’s Electronic Repair Shop for the year 2020.

Material loading percentage  
 
%
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