Answer:
A.)Labor rate = $74.50
B.)Material loading percentage= 93%
C.)Total estimated bill = $83,160
Explanation:
TIME CHARGES:
Technicians' wages and benefits - $165,300
Parts manager salary and benefit -
Office employee's salary and benefit - 23,370
Other overhead - 13,680
Total budgeted costs $202,350
MATERIAL LOADING CHARGES:
Technicians' wages and benefits -
Parts manager salary and benefit - $33,700
Office employee's salary and benefit - 12,290
Other overhead - 39,420
Total budgeted costs - $85,410
A.)
Budgeted hours - 5700
Budgeted cost per labor hour = 202,350/5700 = $35.5
Add: profit margin = $39
Labor rate = $74.5
total invoice cost of parts and materials in 2020 will be = $657,000
Material loading charges = 85410/657000 = 0.13 = 13 %
Add: profit on parts = 80%
Material loading percentage = 93%
C.)
Estimated labor hours = 80
Material parts = $40,000
Labor charges = 80 * $74.5 = $5960
Material parts = $40,000
Material loading charges = 93% * 40000 = $37,200
Total estimated bill = $83,160
