Culver Custom Electronics (RCE) sells and installs complete security, computer, audio, and video systems for homes. On newly constructed homes it provides bids using time-and-material pricing. The following budgeted cost data are available. Time Material Loading Charges Charges Technicians' wages and benefits $174,000 Parts manager's salary and benefits $39,440 Office employee's salary and benefits 36,250 17,400 Other overhead 14,500 48,720 Total budgeted costs $224,750 $105,560 The company has budgeted for 7,250 hours of technician time during the coming year. It desires a $38 profit margin per hour of lab and an 80% profit on parts. It estimates the total invoice cost of parts and materials in 2022 will be $812,000. (a) Compute the rate charged per hour of labor. (Round answer to 2 decimal places, e.g. 10.50.)
Culver Custom Electronics (RCE) sells and installs complete security, computer, audio, and video systems for homes. On newly constructed homes it provides bids using time-and-material pricing. The following budgeted cost data are available. Time Material Loading Charges Charges Technicians' wages and benefits $174,000 Parts manager's salary and benefits $39,440 Office employee's salary and benefits 36,250 17,400 Other overhead 14,500 48,720 Total budgeted costs $224,750 $105,560 The company has budgeted for 7,250 hours of technician time during the coming year. It desires a $38 profit margin per hour of lab and an 80% profit on parts. It estimates the total invoice cost of parts and materials in 2022 will be $812,000. (a) Compute the rate charged per hour of labor. (Round answer to 2 decimal places, e.g. 10.50.)
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 3PB: A local picnic table manufacturer has budgeted the following overhead costs: They are considering...
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