Exercise 22-9 LINK TO TEXT LINK TO TEXT LINK TO TEXT Exercise 22-9 Rey Custom El
ID: 2509296 • Letter: E
Question
Exercise 22-9
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Exercise 22-9
Rey Custom Electronics (RCE) sells and installs complete security, computer, audio, and video systems for homes. On newly constructed homes it provides bids using time-and-material pricing. The following budgeted cost data are available.Time
Charges Material
Loading
Charges Technicians' wages and benefits $ 142,520 - Parts manager's salary and benefits - $ 33,200 Office employee's salary and benefits 31,134 19,300 Other overhead 18,922 46,350 Total budgeted costs $ 192,576 $ 98,850
The company has budgeted for 6,710 hours of technician time during the coming year. It desires a $ 38.99 profit margin per hour of labor and an 80% profit on parts. It estimates the total invoice cost of parts and materials in 2017 will be $ 750,000 . Your answer is correct. Compute the rate charged per hour of labor. (Round answer to 2 decimal places, e.g. 10.50.)
Labor rate $ per hour
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Your answer is correct. Compute the material loading percentage. (Round answer to 2 decimal places, e.g. 10.50.)Material loading percentage %
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Your answer is incorrect. Try again. RCE has just received a request for a bid from Buil Builders on a $ 1,222,000 new home. The company estimates that it would require 76 hours of labor and $ 43,900 of parts. Compute the total estimated bill. (Round answer to 2 decimal places, e.g. 10.50.)Total estimated bill $
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Explanation / Answer
Compute the rate charged per hour of labor.
142520/6710
21.23
31134/6710
4.63
18922/6710
2.81
Total hourly cost
192576
28.67
Profit margin
38.99
Rate charged per labor hour
67.66
Compute the material loading percentage.
33200 + 19300
52500/750000
0.07
+ other OH
46350/750000
0.06
Total
98850/750000
0.13
+ 80% profit on parts
0.8
Material load percentage
0.93
RCE has just received a request for a bid from Build Builders on a $ 1,222,000 new home. The company estimates that it would require 76 hours of labor and $ 43,900 of parts. Compute the total estimated bill.
Job: Build a new home
Labor charges: 76 hours x 67.66
5142.16
Material charges:
Costs of parts materials
43900
Material loading charges(93% x 43900)
40827
84727
Total price of labor and material
$89869.16
142520/6710
21.23
31134/6710
4.63
18922/6710
2.81
Total hourly cost
192576
28.67
Profit margin
38.99
Rate charged per labor hour
67.66
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