Exercise M-9 (Part Level Submission) (a) Open Show Work Exercise M-9 (Part Level

Question

Exercise M-9 (Part Level Submission)

(a)

Open Show Work

Exercise M-9 (Part Level Submission)

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 $147,481 -        Parts manager's salary and benefits -        $33,400 Office employee's salary and benefits 26,646 16,790 Other overhead 15,911 40,726 Total budgeted costs $190,038 $90,916
The company has budgeted for 6,390 hours of technician time during the coming year. It desires a $37.68 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 $717,000.

(a)

Compute the rate charged per hour of labor. (Round answer to 2 decimal places, e.g. 10.50.)
Labor rate $

per hour Click if you would like to Show Work for this question:

Open Show Work

Explanation / Answer

HOurly rate :Direct labor cost/hours

   = 190038/6390

   =$ 29.74

Labor rate =Hourly rate+profit margin

= 29.74+37.68

=$ 67.42 per hour

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

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