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Wasson's Classic Cars restores classic automobiles to showroom status. Budgeted data for the current year are as follows. Restorers' wages and fringe benefits Purchasing agent's salary and fringe benefits Administrative salaries and fringe benefits Other overhead costs Total budgeted costs Time Charges $247,800 (a) 47,200 11,800 $306,800 Material Loading Charges $69,300 21,000 77,400 $167,700 The company anticipated that the restorers would work a total of 11,800 hours this year. Expected parts and materials were $1,290,000. In late January, the company experienced a fire in its facilities that destroyed most of the accounting records. The accountant remembers that the hourly labor rate was $68 and that the material loading charge was 82%.

Wasson's Classic Cars restores classic automobiles to showroom status. Budgeted data for the current year are as follows. Restorers' wages and fringe benefits Purchasing agent's salary and fringe benefits Administrative salaries and fringe benefits Other overhead costs Total budgeted costs Time Charges $247,800 (a) 47,200 11,800 $306,800 Material Loading Charges $69,300 21,000 77,400 $167,700 The company anticipated that the restorers would work a total of 11,800 hours this year. Expected parts and materials were $1,290,000. In late January, the company experienced a fire in its facilities that destroyed most of the accounting records. The accountant remembers that the hourly labor rate was $68 and that the material loading charge was 82%.

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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(b) Determine the profit margin on materials. (Round intermediate calculations to 2 decimal places, e.g. 10.25% and final answer to 0 decimal places, e.g. 10%.) Profit margin on materials eTextbook and Media: Save for Later % Attempts: 0 of 3 used Submit Answer
Transcribed Image Text:(b) Determine the profit margin on materials. (Round intermediate calculations to 2 decimal places, e.g. 10.25% and final answer to 0 decimal places, e.g. 10%.) Profit margin on materials eTextbook and Media: Save for Later % Attempts: 0 of 3 used Submit Answer
Wasson's Classic Cars restores classic automobiles to showroom status. Budgeted data for the current year are as follows. Restorers' wages and fringe benefits Purchasing agent's salary and fringe benefits Administrative salaries and fringe benefits Other overhead costs Total budgeted costs (a) Your answer is correct. Time Charges $247,800 Profit margin on labor 47,200 eTextbook and Media 11,800 42 $306,800 The company anticipated that the restorers would work a total of 11,800 hours this year. Expected parts and materials were $1,290,000. In late January, the company experienced a fire in its facilities that destroyed most of the accounting records. The accountant remembers that the hourly labor rate was $68 and that the material loading charge was 82%. Material Loading Charges $69,300 21,000 Determine the profit margin per hour on labor. (Round intermediate calculations to 2 decimal places, e.g. 10.25 and final answer to 0 decimal places, e.g. 10.) per hour 77,400 $167,700
Transcribed Image Text:Wasson's Classic Cars restores classic automobiles to showroom status. Budgeted data for the current year are as follows. Restorers' wages and fringe benefits Purchasing agent's salary and fringe benefits Administrative salaries and fringe benefits Other overhead costs Total budgeted costs (a) Your answer is correct. Time Charges $247,800 Profit margin on labor 47,200 eTextbook and Media 11,800 42 $306,800 The company anticipated that the restorers would work a total of 11,800 hours this year. Expected parts and materials were $1,290,000. In late January, the company experienced a fire in its facilities that destroyed most of the accounting records. The accountant remembers that the hourly labor rate was $68 and that the material loading charge was 82%. Material Loading Charges $69,300 21,000 Determine the profit margin per hour on labor. (Round intermediate calculations to 2 decimal places, e.g. 10.25 and final answer to 0 decimal places, e.g. 10.) per hour 77,400 $167,700
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