Padong Remanufacturing rebuilds spot welders for manufacturers. The following bu
ID: 2388994 • Letter: P
Question
Padong Remanufacturing rebuilds spot welders for manufacturers. The following budgeted cost data for 2006 is available for Padong.
Time Charges Material Loading Charges
Technicians' wages and benefits $228,000 –
Parts manager's salary and benefits – $42,500
Office employee's salary and benefits 38,000 9,000
Other overhead 15,200 24,000
Total budgeted costs $281,200 $75,500
The company desires a $35 profit margin per hour of labor and a 25% profit margin on parts. It has budgeted for 7,600 hours of repair time in the coming year, and estimates that the total invoice cost of parts and materials in 2006 will be $400,000.
2. Compute the material loading percentage. (Round to three decimal places.)
Explanation / Answer
Padong Remanufacturing Budgeted costs for the year 2006 Time Material Loading charges Charges* Technicians' wages and benefits $228,000 - Parts manager's salary andbenefits - $42,500 Office emplolyee's salary and benefits 38,000 9,000 Other overhead 15,200 24,000 Total budgeted costs $281,200 $75,500 Budgeted material cost $400,000 Budgeted material loading chages% ($75,500/$400,000*100) 18.87% Profit margin 25% Material loading percentage 43.80%
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