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aliya0001 [1]
3 years ago
14

Second Chance Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2020 is available for Second

Chance.
Time Charges Material Loading Charges
Technicians' wages and benefits $266,000 -
Parts manager's salary and benefits - $40,000
Office employee's salary and benefits 45,600 10,500
Other overhead 22,800 28,000
Total budgeted costs $334,400 $78,500

The company desires a $35 profit margin per hour of labor and a 26.00% profit margin on parts. It has budgeted for 7,600 hours of repair time in the coming year, and estimates that the total invoice cost of parts and materials in 2020 will be $400,000.

Required:
a. Compute the rate charged per hour of labor.
b. Compute the material loading percentage.
Business
1 answer:
Nata [24]3 years ago
6 0

Answer:

a. Rate charged per hour of labor = [Total Budgeted Costs (Time Charges) / Number of Hours + Profit margin]

Rate charged per hour of labor = [$334,400/7,600 + $35]

Rate charged per hour of labor = $44 + $35

Rate charged per hour of labor = $79

b. Calculation of Material Loading percentage:

= [$40,000 + $10,500 + $28,000] / $400,000

= $78,500 / $400,000

= 0.19625

= 19.63%

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George is offered an investment opportunity by his friend Ray. He asks George for $6,900 and offers to repay him $12,990 after a
SVETLANKA909090 [29]

Answer:

Depositing in bank is a better option.

Explanation:

For this solution, we can either determine the interest rate given to George by his one of the friend or the future worth method,

Future worth method is used here,

Given that,

PV = $6,900

R = 9%

N = 10 Years

FV = PV\times(1+R)^{N}

FV = 6,900\times(1+0.09)^{10}

FV = 6,900\times(1.09)^{10}

FV = 6,900 × 2.3673

FV = $16,334.81

Since, the future worth of investing in bank is more than the money to be offered by the George's friend (16,334.81 > 12,900) and hence, depositing in bank is a better option.

8 0
3 years ago
Match the cost variance component to its definition.
Komok [63]

Answer:

1. D

2. A

3. C

4. B

Explanation:

Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services.

In sales and marketing, pricing of products is considered to be an essential element of a business firm's marketing mix because place, promotion and product largely depends on it.

In Accounting, costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.

The various types of cost variance components and their definition includes the following;

1. Standard price: the expected price

2. Actual quantity: the input used to manufacture the quantity of output

3. Actual price: the amount paid to acquire input

4. Standard quantity: the expected input for the quantity of output

3 0
2 years ago
Popson Inc. incurred a material loss that was unusual in character. This loss should be reported as:
lawyer [7]

Popson Inc. incurred a material loss that was unusual in character. This loss should be reported as: a line item within income from continuing operations.

<h3><u>Explanation:</u></h3>

Any income or loss that was incurred during the continuous operations of any segment of business or in the continuous operations of any segment of business will be either represented as after tax gain or loss on selling the business segment and the after tax effect of the operations of the discontinued business segment.

The areas such as expenses, revenues, loss and gain and those excluding the   operation discontinued and extra ordinary items will included as the income from continuing operations.In the example given, the company has material loss during its operations and hen it should be reported as a line item within income from continuing operations.

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Marta_Voda [28]

a, since twenty-seven should say 27 or twenty seven without a dash

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Generally, you can can develop a good body composition by performing the following:

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