Answer:
Total cost is $200,000 and the bill for the job is $407.5
Explanation:
The total cost would be:
Total cost = Wages + Benefits + Overhead
= $110,000 + $40,000 + $50,000
= $200,000
Cost per hour = Total Cost / Labor hours
= $200,000 / 5,000
= $40 per hour
Profit per hour required is $20 per hour
Total rate per hour = Cost per hour + Profit per hour
= $40 + $20
= $60 per hour
The bill for the job would be:
Let the bill be X
Total bill = Used part cost + Repair cost per hour (1.5 hr is 93) + Loading charges
X = $70 + 93 + .6X
0.4 X = $163
X = $163 / 0.4
X = $407.5
