Exercise 8-10 Wassen\'s Cassic Cars restores classic automebiles to showroom sta

Question

Exercise 8-10 Wassen's Cassic Cars restores classic automebiles to showroom status. Budgeted data for the current year are as follows Material Leading Charges Charges $256,532 Restorers wages and fringe benefts Purchasing agent's salary and fringe benefits Administrative salaries and fringe benefits Other overhead costs Total budgeted costs 76,003 20,200 47,318 12,980 79,038 316,830 $175241 The company anticipated that the restorers would work a total of 11,800 hours this year. Expected parts and matenals were $1,281,000 In late January, the company experienced a fire in its faclities that destroyed most of the accounting records. The accountant remembers that the hourly labor rate was $70.41 and that the materiat loading charge was 83.85% Determine the profit margin per hour on labor. (Round answer to 2 decimal places, e.g. 10.50) Profit margin on labor per hour Determine the profit margin on materials. (Round answer to 2 decimal places o.p. 10.50) Profit margin on materials uired 154 hours of labor and $62,100 in parts and materials.(Round answer to 0 decimal Determine the total price of labor and materials on a job that was completed after the fre that req places, e.g. 125.) Total price by accessing this Question A Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor

Explanation / Answer

1) profit margin on labor Service price 70.41 service cost 26.85 (316830/11800hrs) profit margin on labor 43.56 per hour 2) profit margin on materials loading charge 83.85% loading cost 13.68% (175241/1281000) profit margin on materials 70.17% 3) total price labor (154*70.41)= 10843 loading ch (62100*83.85%) 52071 materials 62100 total price 125014

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