The following data related to labor is available for Sunland Repair Shop for 2019: Repair technicians’ wages $280000 Fringe benefits 80000 Overhead 60000 Total $420000 The desired profit margin is $44 per labor hour. The material loading charge is 40% of invoice cost. It is estimated that 5000 labor hours will be worked in 2019. Sunland’ labor charge per hour in 2019 would be $116. $100. $128. $84.
The following data related to labor is available for Sunland Repair Shop for 2019: Repair technicians’ wages $280000 Fringe benefits 80000 Overhead 60000 Total $420000 The desired profit margin is $44 per labor hour. The material loading charge is 40% of invoice cost. It is estimated that 5000 labor hours will be worked in 2019. Sunland’ labor charge per hour in 2019 would be $116. $100. $128. $84.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following data related to labor is available for Sunland Repair Shop for 2019:
The desired profit margin is $44 per labor hour. The material loading charge is 40% of invoice cost. It is estimated that 5000 labor hours will be worked in 2019.
Sunland’ labor charge per hour in 2019 would be
| Repair technicians’ wages | $280000 |
| 80000 | |
| 60000 | |
| Total |
$420000
|
The desired profit margin is $44 per labor hour. The material loading charge is 40% of invoice cost. It is estimated that 5000 labor hours will be worked in 2019.
Sunland’ labor charge per hour in 2019 would be
$116.
$100.
$128.
$84.
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