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Rey 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. Technicians' wages and benefits Parts manager's salary and benefits Office employee's salary and benefits Other overhead Total budgeted costs Time Charges Labor rate $166,400 eTextbook and Media 30,080 14,720 $211,200 The company has budgeted for 6,400 hours of technician time during the coming year. It desires a $38 profit margin per hour of labor and an 80% profit on parts. It estimates the total invoice cost of parts and materials in 2020 will be $693,000. Material Loading Charges Compute the rate charged per hour of labor. (Round answer to 2 decimal places, eg. 10.50) $34,700 6,880 41,580 $83,160 per hour

Rey 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. Technicians' wages and benefits Parts manager's salary and benefits Office employee's salary and benefits Other overhead Total budgeted costs Time Charges Labor rate $166,400 eTextbook and Media 30,080 14,720 $211,200 The company has budgeted for 6,400 hours of technician time during the coming year. It desires a $38 profit margin per hour of labor and an 80% profit on parts. It estimates the total invoice cost of parts and materials in 2020 will be $693,000. Material Loading Charges Compute the rate charged per hour of labor. (Round answer to 2 decimal places, eg. 10.50) $34,700 6,880 41,580 $83,160 per hour

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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RCE has just received a request for a bid from Buil Builders on a $1,242,000 new home. The company estimates that it would require 80 hours of labor and $38,200 of parts. Compute the total estimated bill. Total estimated bill
Transcribed Image Text:RCE has just received a request for a bid from Buil Builders on a $1,242,000 new home. The company estimates that it would require 80 hours of labor and $38,200 of parts. Compute the total estimated bill. Total estimated bill
Rey 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. Technicians' wages and benefits Parts manager's salary and benefits Office employee's salary and benefits Other overhead Total budgeted costs Labor rate $ Time Charges $166,400 eTextbook and Media 30,080 14,720 $211,200 The company has budgeted for 6,400 hours of technician time during the coming year. It desires a $38 profit margin per hour of labor and an 80% profit on parts. It estimates the total invoice cost of parts and materials in 2020 will be $693,000. Material loading percentage Compute the rate charged per hour of labor. (Round answer to 2 decimal places, eg. 10.50) Compute the material loading percentage. Material Loading Charges $34,700 per hour 6,880 41,580 $83,160 %
Transcribed Image Text:Rey 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. Technicians' wages and benefits Parts manager's salary and benefits Office employee's salary and benefits Other overhead Total budgeted costs Labor rate $ Time Charges $166,400 eTextbook and Media 30,080 14,720 $211,200 The company has budgeted for 6,400 hours of technician time during the coming year. It desires a $38 profit margin per hour of labor and an 80% profit on parts. It estimates the total invoice cost of parts and materials in 2020 will be $693,000. Material loading percentage Compute the rate charged per hour of labor. (Round answer to 2 decimal places, eg. 10.50) Compute the material loading percentage. Material Loading Charges $34,700 per hour 6,880 41,580 $83,160 %
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