Sutton’s Electronic Repair Shop has budgeted the following time and material for 2020. SUTTON’S ELECTRONIC REPAIR SHOP Budgeted Costs for the Year 2020 Time Charges Material Loading Charges Shop employees’ wages and benefits $118,800 ― Parts manager’s salary and benefits ― $25,400 Office employee’s salary and benefits 20,520 13,990 Overhead (supplies, depreciation, advertising, utilities) 28,080 20,200 Total budgeted costs $167,400 $59,590 Sutton’s budgets 5,400 hours of repair time in 2020 and will bill a profit of $14 per labor hour along with a 21% profit markup on the invoice cost of parts. The estimated invoice cost for parts to be used is $101,000. On January 5, 2020, Sutton’s is asked to submit a price estimate to fix a 72-inch flat-screen TV. Sutton’s estimates that this job will consume 9 hours of labor and $300 in parts. Calculate the time-and-material price quotation for fixing the flat-screen TV. Total price of labor and material $
Sutton’s Electronic Repair Shop has budgeted the following time and material for 2020. SUTTON’S ELECTRONIC REPAIR SHOP Budgeted Costs for the Year 2020 Time Charges Material Loading Charges Shop employees’ wages and benefits $118,800 ― Parts manager’s salary and benefits ― $25,400 Office employee’s salary and benefits 20,520 13,990 Overhead (supplies, depreciation, advertising, utilities) 28,080 20,200 Total budgeted costs $167,400 $59,590 Sutton’s budgets 5,400 hours of repair time in 2020 and will bill a profit of $14 per labor hour along with a 21% profit markup on the invoice cost of parts. The estimated invoice cost for parts to be used is $101,000. On January 5, 2020, Sutton’s is asked to submit a price estimate to fix a 72-inch flat-screen TV. Sutton’s estimates that this job will consume 9 hours of labor and $300 in parts. Calculate the time-and-material price quotation for fixing the flat-screen TV. Total price of labor and material $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sutton’s Electronic Repair Shop has budgeted the following time and material for 2020.
| SUTTON’S ELECTRONIC REPAIR SHOP Budgeted Costs for the Year 2020 |
||||||||
| Time Charges | Material Loading Charges | |||||||
| Shop employees’ wages and benefits | $118,800 | ― | ||||||
| Parts manager’s salary and benefits | ― | $25,400 | ||||||
| Office employee’s salary and benefits | 20,520 | 13,990 | ||||||
| 28,080 | 20,200 | |||||||
| Total budgeted costs | $167,400 | $59,590 |
Sutton’s budgets 5,400 hours of repair time in 2020 and will bill a profit of $14 per labor hour along with a 21% profit markup on the invoice cost of parts. The estimated invoice cost for parts to be used is $101,000.
On January 5, 2020, Sutton’s is asked to submit a price estimate to fix a 72-inch flat-screen TV. Sutton’s estimates that this job will consume 9 hours of labor and $300 in parts.
Calculate the time-and-material price quotation for fixing the flat-screen TV.
| Total price of labor and material | $
|
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