* Your answer is incorrect.Pace Corporation has requested an estimate to rebuild its spot welder. Indigo estimates that it would require 36 hours of laborand $2,000 of parts. Compute the total estimated bill. (Round answer to 2 decimal places, e.g. 10.50.)Total estimated bill$5900.60 Indigo Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2025 is available for IndigotabTechnicians' wages and benefitsParts manager's salary and benefitsOffice employee's salary and benefitsOther overheadTotal budgeted costscaps lock(a)Your answer is correct.Labor rateescCompute the rate charged per hour of labor.!1QThe company desires a $40 profit margin per hour of labor and a 28% profit margin on parts. It has budgeted for 7,400 hours of repairtime in the coming year, and estimates that the total invoice cost of parts and materials in 2025 will be $416,000.A$22NNe@2*W$251,600STimeCharges$318,20083@ *#359,200X7,40026per hour80EDA GA$4MaterialLoadingCharges$40,70020,800$73,32011,820888CRar do%5FTV6GY&VIA7BHU8JN(M

Total estimated bill means the amount due from customer for cost as well as profit margin. In the…

* Your answer is incorrect. Pace Corporation has requested an estimate to rebuild its spot welder. Indigo estimates that it would require 36 hours of labor and $2,000 of parts. Compute the total estimated bill. (Round answer to 2 decimal places, e.g. 10.50.) Total estimated bill $ 5900.60

* Your answer is incorrect. Pace Corporation has requested an estimate to rebuild its spot welder. Indigo estimates that it would require 36 hours of labor and $2,000 of parts. Compute the total estimated bill. (Round answer to 2 decimal places, e.g. 10.50.) Total estimated bill $ 5900.60

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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Question

* Your answer is incorrect.
Pace Corporation has requested an estimate to rebuild its spot welder. Indigo estimates that it would require 36 hours of labor
and $2,000 of parts. Compute the total estimated bill. (Round answer to 2 decimal places, e.g. 10.50.)
Total estimated bill
$
5900.60

Indigo Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2025 is available for Indigo
tab
Technicians' wages and benefits
Parts manager's salary and benefits
Office employee's salary and benefits
Other overhead
Total budgeted costs
caps lock
(a)
Your answer is correct.
Labor rate
esc
Compute the rate charged per hour of labor.
!
1
Q
The company desires a $40 profit margin per hour of labor and a 28% profit margin on parts. It has budgeted for 7,400 hours of repair
time in the coming year, and estimates that the total invoice cost of parts and materials in 2025 will be $416,000.
A
$
22
N
Ne
@
2
*
W
$251,600
S
Time
Charges
$318,200
83
@ *
#
3
59,200
X
7,400
26
per hour
80
E
D
A GA
$
4
Material
Loading
Charges
$40,700
20,800
$73,320
11,820
888
C
R
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5
F
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“I’m not sure we should lay out $350,000 for that automated welding machine,” said Jim Alder, president of the Superior Equipment Company. “That’s a lot of money, and it would cost us $94,000 for software and installation, and another $60,000 per year just to maintain the thing. In addition, the manufacturer admits it would cost $57,000 more at the end of three years to replace worn-out parts.” “I admit it’s a lot of money,” said Franci Rogers, the controller. “But you know the turnover problem we’ve had with the welding crew. This machine would replace six welders at a cost savings of $124,000 per year. And we would save another $8,500 per year in reduced material waste. When you figure that the automated welder would last for six years, I’m sure the return would be greater than our 15% required rate of return.” “I’m still not convinced,” countered Mr. Alder. “We can only get $22,000 scrap value out of our old welding equipment if we sell it now, and in six years the new machine…
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