Second Chance Welding rebuilds spot welders for manufacturers. The following bud

Question

Second Chance Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2017 is available for Second Chance Time Charges $198,800 Material Loading Charges Technicians' wages and benefits Parts manager's salary and benefits ffice employee's salary and benefits Other overhead Total budgeted costs 56,800 7,100 $262,700 $39,800 9,300 27,720 $76,820 The company desires a $35.00 profit margin per hour of labor and a 23.00% profit margin on parts. It has budgeted for 7,100 hours of repair time in the coming year, and estimates that the total invoice cost of parts and materials in 2017 will be $396,000 Compute the rate charged per hour of labor. (Round answer to 2 decimal places, e.g. 10.50.) Labor rate per hour Compute the material loading percentage. (Round answer to 3 decimal places, e.g. 10.501.) Material loading percentage

Explanation / Answer

Details Amount Amount Ans 1 Total Budgeted Time Charges 2,62,700.00 Total Budgeted repair hours        7,100.00 Cost per Rpair hour 37 Profit Margin Per Hour 35 Rate charged per Hour 72 Ans 2 Total budgeted material Loading charges      76,820.00 Total invoice costs of part nad materials 3,96,000.00 Total budgeted material Loading charges as a % 19.40% Ans 3 Repair Hours              44.00 Rate per Hour              72.00 3,168.00 Cost of parts 240000% Material Loading Charges 46558% Add: Profit margin=23% on Material cost 659.0824 Total 3,827.08

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