5. Greasy Spoon Service repairs available for 2006: l food n equipment. The foll

Question

5. Greasy Spoon Service repairs available for 2006: l food n equipment. The following budgeted cost data is Material Charges S600,000 Technicians' wages and benefits Parts manager's salary and benefits Office manager's salary and benefits Other overhcad Total budgeted costs S72 000 18,000 112,000 Greasy Spoon has budgeted for 10,000 hours of technician time during the coming year. It desires a $64 profit margin per hour of labor and a 50% profit margin on parts. Greasy Spoon estimates the total invoice cost of parts and materials in 2006 will be S500,000. 1. Compute the rate charged per hour of labor 2. Compute the material loading charge. 3. Greasy Spoon has received a request from Lime Corporation for an estimate to repair a commercial fryer The company estimates that it would take 20 hours of labor and $8,000 of parts. Compute the total estimated

Explanation / Answer

Req 1: Rate Charged per hour of Labour: Labour cost per hour ($760,000/10,000) 76 Aadd: Profit Margin per hour 64 Rate Charged per hour of Labour: 140 Req 2: Material Loading charge per $ of material part: Total budgeted cost 200000 Total Invoice of material 500000 Cost per $ of material 0.40 Add: Profitt margin @50% of cost 0.20 Material Loading charge per $ of material part: 0.60 Req 3: Total Estimated Bill: Total estimated cost of parts 8000 Total Labouur charges (20 hours @ 140 per hour) 2800 Total material loading charges ($8000@ $0.60) 4800 Total Estimated Bill: 15600

Related Questions

Navigate

• Browse (All)
• Browse 5
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.