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Repair Shop Co. provides electronic repairs and has the following budget for next year: Repair technicians' wages Repair service manager salary Parts manager salary Repair shop operating costs Parts ordering costs Parts handling costs Invoice cost of parts used Total billable hours for repair $420,000 45,000 40,000 180,000 10,000 30,000 260,000 12,000 hrs The company has a target profit of $6 per hour of repair time and 20% of the invoice cost of parts used.

Repair Shop Co. provides electronic repairs and has the following budget for next year: Repair technicians' wages Repair service manager salary Parts manager salary Repair shop operating costs Parts ordering costs Parts handling costs Invoice cost of parts used Total billable hours for repair $420,000 45,000 40,000 180,000 10,000 30,000 260,000 12,000 hrs The company has a target profit of $6 per hour of repair time and 20% of the invoice cost of parts used.

FINANCIAL ACCOUNTING
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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Repair Shop Co. provides electronic repairs and has the following budget for next year: Repair technicians' wages Repair service manager salary Parts manager salary Repair shop operating costs Parts ordering costs Parts handling costs Invoice cost of parts used Total billable hours for repair $420,000 45,000 40,000 180,000 10,000 30,000 260,000 12,000 hrs The company has a target profit of $6 per hour of repair time and 20% of the invoice cost of parts used. Required Calculate the time rate and the materials loading charge that would be used to bill customers.
Transcribed Image Text:Repair Shop Co. provides electronic repairs and has the following budget for next year: Repair technicians' wages Repair service manager salary Parts manager salary Repair shop operating costs Parts ordering costs Parts handling costs Invoice cost of parts used Total billable hours for repair $420,000 45,000 40,000 180,000 10,000 30,000 260,000 12,000 hrs The company has a target profit of $6 per hour of repair time and 20% of the invoice cost of parts used. Required Calculate the time rate and the materials loading charge that would be used to bill customers.
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