Second Chance Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2017 is available for Second ChanceMaterialLoadingChargesTimeChargesTechnicians'S175,000wages andbenefitsPartsmanager'ssalary andbenefits$39,000Officeemployee'ssalary andbenefits28,0006,600Other7,00019,000overheadTotalbudgeted$210,000$64,600costs The company desires a S30.00 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 thetotal invoice cost of parts and materials in 2017 will be S380,000.a Compute the rate charged per hour of laborb. Compute the material loading percentagea Jeff Corporation has requested an estimate to rebuild its spot welder. Second Chance estimates that it would require 25 hours of labor and $2.000 of parts. Compute the total estimated billLabel each part and show ALL your work!

Second Chance Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2017 is available for Second Cha Material Loading Charges Time Charges Technicians' S175,000 wages and benefits Parts manager's salary and benefits $39,000 Office employee's salary and benefits 28,000 6,600 Other overhead 7,000 19,000 Total budgeted $210,000 $64,600 costs

Second Chance Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2017 is available for Second Cha Material Loading Charges Time Charges Technicians' S175,000 wages and benefits Parts manager's salary and benefits $39,000 Office employee's salary and benefits 28,000 6,600 Other overhead 7,000 19,000 Total budgeted $210,000 $64,600 costs

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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Oriole Remanufacturing rebuilds spot welders for manufacturers. The following budgeted cost data for 2022 are available for Oriole: Time Charges Material Loading Charges Technicians' wages and benefits $260,700 Parts manager's salary and benefits $36,960 Office employee's salary and benefits 63,200 16,720 Other overhead 23,700 25,520 Total budgeted costs $347,600 $79,200 The company wants a $35 profit margin per hour of labour and a 30% profit margin on parts. It has budgeted for 7,900 hours of repair time in the coming year and estimates that the total invoice cost of parts and materials in 2022 will be $352,000. (a) Your answer is correct. Calculate the rate charged per hour of labour. Rate charged eTextbook and Media 79 per hour Attempts: 1 of 2 used (b) Calculate the material loading percentage. (Round answer to 3 decimal places, e.g. 15.251%.) Material loading percentage eTextbook and Media Save for Later % Attempts: 0 of 2 used Submit Answer
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Overhead rate per hour?
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Blue Spruce Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2022 is available for Blue Spruce. Technicians' wages and benefits Parts manager's salary and benefits Office employee's salary and benefits Other overhead (a) Total budgeted costs Compute the rate charged per hour of labor. Time Charges $202,800 Labor rate $ 39,000 7,800 $249,600 The company desires a $39 profit margin per hour of labor and a 28% profit margin on parts. It has budgeted for 7,800 hours of repair time in the coming year, and estimates that the total invoice cost of parts and materials in 2022 will be $416,000. Material Loading Charges per hour $39,300 14,780 29,120 $83,200
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A Company produces items to order and had the following budgeted overheads for the year on normal activity levels. Department Assembly Machining Painting Packing Labour: Budgeted Overheads Selling and administrative overheads are 10% of Factory Cost. The company received an order for 500 widgets, made as Batch 2024 and incurred the following costs. Assembly Dept: Machining Dept. Painting Dept. Packing Dept. Required: 36.000 86 000 40 000 30.000 Overhead Absorption Base 1500 per labour hours 2.500 per machine hours 1 800 per labour hours 1000 per labour hours 256 hours (2) $4.25 per hour 904 hours $2.50 per hour 180 hours) $3.25 per hour 350 hours @ $5.25 per hour Calculate the OAR's for each department. Calculate the total cost of the Batch showing clearly: i. Prime Cost ii. Factory Cost iii. Total Cost of the Batch