Answer:
The total estimated bil is $82,564.8
Explanation:
a. In order to calculate the rate charged per hour of labor we would have to use the following formula:
Labor rate per hour=<u>Total budgeted time charges</u> +Profit Margin
Budgeted hours
=<u>$171,585</u> + $38.86
5,580
=$69.61
The rate charged per hour of labor is $69.61
b. In order to calculate the material loading percentage we would have to use the following formula:
material loading=<u>Total budgeted material loadingcharges</u>+Profitpercentage
percentage Total invoice of parts and materiales on parts
material loading percentage=<u>$93,675 </u> + 80%
$750,000
=92.49%
The material loading percentage is 92.49%
c. In order to calculate the total estimated bill we would have to use the following formula:
total estimated bill=(labor rate per hour×hours required)+(material loading percentage×parts required)+material
=($69.61×80)+(92.49%×$40,000)+$40,000
=$5,568.8+$36,996+$40,000
=$82,564.8
The total estimated bil is $82,564.8
