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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

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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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: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
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
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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