The following information relates to labor for Sheridan Appliance Repair Shop. Repair-technicians' wages Fringe benefits Overhead $110,000 Total cost $ 26,400 48,400 The desired profit margin per hour is $28. The material loading charge is 60% of invoice cost. Sheridan estimates that 4,400 labor hours will be worked next year. If Sheridan repairs a dishwasher that takes 1.5 hours to repair and uses parts that cost $80, compute the bill for the job.
The following information relates to labor for Sheridan Appliance Repair Shop. Repair-technicians' wages Fringe benefits Overhead $110,000 Total cost $ 26,400 48,400 The desired profit margin per hour is $28. The material loading charge is 60% of invoice cost. Sheridan estimates that 4,400 labor hours will be worked next year. If Sheridan repairs a dishwasher that takes 1.5 hours to repair and uses parts that cost $80, compute the bill for the job.
Chapter1: Financial Statements And Business Decisions
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The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:The following information relates to labor for Sheridan Appliance Repair Shop.
Repair-technicians' wages
Fringe benefits
Overhead
Total cost
$110,000
$
26,400
The desired profit margin per hour is $28. The material loading charge is 60% of invoice cost. Sheridan estimates that 4,400 labor
hours will be worked next year. If Sheridan repairs a dishwasher that takes 1.5 hours to repair and uses parts that cost $80, compute
the bill for the job.
48,400
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