Second Chance Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2014 is available for Second Chance : Time Charges Material Loading Charges Technicians' wages and benefits $ 246,760 Parts Manager's Salary and benefits $ 40,230 Office Employees' Salary and benefits $31,840 $ 9,002 Other Overheads $ 7,960 $ 22,320 Total Budgeted Costs $ 286,560 $ 71,552 The company desires a $32.89 profit margin per hour of labor and a 21% profit margin on parts. It has budgeted for 7,960 hours of repair time in the coming year, and estimates that the total invoice cost of parts and materials in 2014 will be $400,000. A.) Compute the Labor rate per hour in dollars ($). (Round answer to 2 decimal places, e.g. 10.50.) B.) Compute the Material loading percentage (%). (Round answer to 3 decimal places, e.g. 10.501.) C.) Pace Corporation has requested an estimate to rebuild its spot welder. Second Chance Welding estimates that it would require 44 hours of labor and $2,500 of parts. Compute the total estimated bill in dollars ($) (Round answer to 2 decimal places, e.g. 10.50.)

Second Chance Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2014 is available for Second Chance : Time Charges Material Loading Charges Technicians' wages and benefits $ 246,760 Parts Manager's Salary and benefits $ 40,230 Office Employees' Salary and benefits $31,840 $ 9,002 Other Overheads $ 7,960 $ 22,320 Total Budgeted Costs $ 286,560 $ 71,552 The company desires a $32.89 profit margin per hour of labor and a 21% profit margin on parts. It has budgeted for 7,960 hours of repair time in the coming year, and estimates that the total invoice cost of parts and materials in 2014 will be $400,000. A.) Compute the Labor rate per hour in dollars ($). (Round answer to 2 decimal places, e.g. 10.50.) B.) Compute the Material loading percentage (%). (Round answer to 3 decimal places, e.g. 10.501.) C.) Pace Corporation has requested an estimate to rebuild its spot welder. Second Chance Welding estimates that it would require 44 hours of labor and $2,500 of parts. Compute the total estimated bill in dollars ($) (Round answer to 2 decimal places, e.g. 10.50.)

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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