Second Chance Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2020 is available for Second Chance. Technicians' wages and benefits Parts manager's salary and benefits Office employee's salary and benefits Other overhead Total budgeted costs Time Charges $238,000 49,000 35,000 $322,000 Labor rate $ Compute the rate charged per hour of labor. Material Loading Charges The company desires a $37 profit margin per hour of labor and a 20.00% profit margin on parts. It has budgeted for 7,000 hours of repair time in the coming year, and estimates that the total invoice cost of parts and materials in 2020 will be $392,000. per hour $40,100 7,430 27,440 $74,970
Second Chance Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2020 is available for Second Chance. Technicians' wages and benefits Parts manager's salary and benefits Office employee's salary and benefits Other overhead Total budgeted costs Time Charges $238,000 49,000 35,000 $322,000 Labor rate $ Compute the rate charged per hour of labor. Material Loading Charges The company desires a $37 profit margin per hour of labor and a 20.00% profit margin on parts. It has budgeted for 7,000 hours of repair time in the coming year, and estimates that the total invoice cost of parts and materials in 2020 will be $392,000. per hour $40,100 7,430 27,440 $74,970
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Transcribed Image Text:Compute the material loading percentage. (Round answer to 3 decimal places, e.g. 10.501%)
Material loading percentage
eTextbook and Media A
Pace Corporation has requested an estimate to rebuild its spot welder. Second Chance estimates that it would require 36 hours of
labor and $2,400 of parts. Compute the total estimated bill. (Round answer to 2 decimal places, e.g. 10.50.)
Total estimated bill $
%
eTextbook and Media
Transcribed Image Text:Second Chance Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2020 is available for Second
Chance.
Technicians' wages and benefits
Parts manager's salary and benefits
Office employee's salary and benefits
Other overhead
Total budgeted costs
Compute the rate charged per hour of labor.
Labor rate
Time
Charges
$238,000
$
49,000
35,000
$322,000
Material
Loading
Charges
per hour
$40,100
The company desires a $37 profit margin per hour of labor and a 20.00% profit margin on parts. It has budgeted for 7,000 hours of
repair time in the coming year, and estimates that the total invoice cost of parts and materials in 2020 will be $392,000.
7,430
27,440
$74,970
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