C. TOTAL ESTIMATED BILL Exercise 8-8 (Part Level Submission) Second Chance Weldi

Question

C. TOTAL ESTIMATED BILL

Exercise 8-8 (Part Level Submission) Second Chance Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2017 is available for Second Chance Time Charges $185,000 Material Loading Charges Technicians' wages and benefits Parts manager's salary and benefits Office employee's salary and benefits Other overhead Total budgeted costs 37,000 37,000 $259,000 $40,900 11,548 29,050 $81,498 The company desires a $36.00 profit margin per hour of labor and a 25.00% 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 2017 will be $415,000 Compute the rate charged per hour of labor. (Round answer to 2 decimal places, e.g. 10.5o.) Labor rate per hour

Explanation / Answer

Labour rate per hour         = ( $ 259000 / 7400 hours) + $ 36

                                                = $ 35 + $ 36

                                                = $ 71/hour

Material Loading percentage      = [ ( $ 81498 / $ 415000 ) ] + 25 = 19.63 + 25

= 44.64 %

Total Estimated Bill

The information regarding the labour hours and cost of parts are missing for the computation of total estimated bill. So I’m not able to find the total estimated bill

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