material loading rate.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The following data are available for ABC Repair Shop purchasing and materials management for 2016:

       Purchasing manager wages        $   150,000

       Fringe benefits                                 50,000

       Overhead                                          80,000

       Budgeted Material purchases       $400,000

The desired profit margin is $10 per labour hour. It is estimated that 4,000 labour hours will be worked in 2016. The company wants to make a 12% profit on material purchases. Calculate the material loading rate.

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