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sel generators used to power heavy equipment and locomotive motors for the BNSF Railway. The following budgeted cost data is available for 2021: Technicians' wages and benefits Parts manager's salary and benefits Office manager's salary and benefits Other overhead Total budgeted costs Time Charges $610,000 72,000 38,000 $720,000 Material Charges Required: 1. Compute the rate charged per hour of labor. 2. Compute the material loading charge. $ 90,000 18,000 105,000 $213,000 The company has budgeted for 8,000 hours of technician time during the coming year. It desires a $75 profit margin per hour of labor and a 45% profit margin on parts. It is estimated the total invoice cost of parts and materials in 2021 will be $1,200,000. 3. Fred has received a request from BNSF Railway for an estimate to repair a diesel generator for their Roseville Locomotive #459. Fred estimates that it would take 24 hours of labor and $10,300 of parts. Compute the total estimated bill.

sel generators used to power heavy equipment and locomotive motors for the BNSF Railway. The following budgeted cost data is available for 2021: Technicians' wages and benefits Parts manager's salary and benefits Office manager's salary and benefits Other overhead Total budgeted costs Time Charges $610,000 72,000 38,000 $720,000 Material Charges Required: 1. Compute the rate charged per hour of labor. 2. Compute the material loading charge. $ 90,000 18,000 105,000 $213,000 The company has budgeted for 8,000 hours of technician time during the coming year. It desires a $75 profit margin per hour of labor and a 45% profit margin on parts. It is estimated the total invoice cost of parts and materials in 2021 will be $1,200,000. 3. Fred has received a request from BNSF Railway for an estimate to repair a diesel generator for their Roseville Locomotive #459. Fred estimates that it would take 24 hours of labor and $10,300 of parts. Compute the total estimated bill.

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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Fred Burgess Diesel Service, Inc. repairs commercial diesel generators used to power heavy equipment and locomotive motors for the BNSF Railway. The following budgeted cost data is available for 2021: Technicians' wages and benefits Parts manager's salary and benefits Office manager's salary and benefits Other overhead Total budgeted costs Time Charges $610,000 72,000 38,000 $720,000 Material Charges $ 90,000 18,000 105,000 $213,000 The company has budgeted for 8,000 hours of technician time during the coming year. It desires a $75 profit margin per hour of labor and a 45% profit margin on parts. It is estimated the total invoice cost of parts and materials in 2021 will be $1,200,000. Required: 1. Compute the rate charged per hour of labor. 2. Compute the material loading charge. 3. Fred has received a request from BNSF Railway for an estimate to repair a diesel generator for their Roseville Locomotive #459. Fred estimates that it would take 24 hours of labor and $10,300 of parts. Compute the total estimated bill.
Transcribed Image Text:Fred Burgess Diesel Service, Inc. repairs commercial diesel generators used to power heavy equipment and locomotive motors for the BNSF Railway. The following budgeted cost data is available for 2021: Technicians' wages and benefits Parts manager's salary and benefits Office manager's salary and benefits Other overhead Total budgeted costs Time Charges $610,000 72,000 38,000 $720,000 Material Charges $ 90,000 18,000 105,000 $213,000 The company has budgeted for 8,000 hours of technician time during the coming year. It desires a $75 profit margin per hour of labor and a 45% profit margin on parts. It is estimated the total invoice cost of parts and materials in 2021 will be $1,200,000. Required: 1. Compute the rate charged per hour of labor. 2. Compute the material loading charge. 3. Fred has received a request from BNSF Railway for an estimate to repair a diesel generator for their Roseville Locomotive #459. Fred estimates that it would take 24 hours of labor and $10,300 of parts. Compute the total estimated bill.
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