HH Auto Repair reports the following information for the coming year.Labor rate, including fringe benefitsAnnual labor hoursAnnual materials (parts) purchasesAnnual overhead costs:53 per labor hour11,700 bours$2,170,000Materials purchasing, handling, and storageother overhead (depreciation, insurance, taxes, rent)Target profit margin (on both labor and materials)$ 347, 200$ 191,90030 11. Compute the price (rate) per hour of direct labor. (Round your answer to 2 decimal places)2. Compute the materials markup (in %).3. What price should the company quote for a job requiring three labor hours and $750 in parts? (Round your answer to 2 decimalplaces.)1. Total labor rate per hour2. Materials markup3. Total price quote

Labor rate per hour is the charge of labor for one hour of work. Markup is the additional amount…

HH Auto Repair reports the following information for the coming year Labor rate, including fringe benetits Annual labor hours Annual materials (parts) purchases Annual overhead costai Materials purchasing, handling, and storage Other overhead (depreciation, insurance, taxes, rent) Target profit margin (on both labor and materials) 53 per labor hour 11,700 hours $2,170,000 $ 347,200 191,900 30 1 1. Compute the price (rate) per hour of direct labor. (Round your answer to 2 decimal places) 2. Compute the materials markup (In %). 3. What price should the company quote for a job requiring three labor hours and $750 in parts? (Round your answer to 2 decinal places.) 1. Total labor rate per hour 2. Matorials markup 3. Total price quole

HH Auto Repair reports the following information for the coming year Labor rate, including fringe benetits Annual labor hours Annual materials (parts) purchases Annual overhead costai Materials purchasing, handling, and storage Other overhead (depreciation, insurance, taxes, rent) Target profit margin (on both labor and materials) 53 per labor hour 11,700 hours $2,170,000 $ 347,200 191,900 30 1 1. Compute the price (rate) per hour of direct labor. (Round your answer to 2 decimal places) 2. Compute the materials markup (In %). 3. What price should the company quote for a job requiring three labor hours and $750 in parts? (Round your answer to 2 decinal places.) 1. Total labor rate per hour 2. Matorials markup 3. Total price quole

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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