Reference no: EM132605214

Provided is the following data for Marina Bay, a boat repair shop.

                                                         Repairs                                 Material loading charges

Mechanic's wages and benefits                     $103,500

Parts manager's salary and benefits                                                          $11,500

Office employee's salary and benefits               20,700                                  2,300

Other overhead(supplies, depreciation,                26,800                              14,400

property taxes, advertising, utilities)

total budgeted costs                                        $151,000                             $28,200

1. Employees worked 5,000 hours for repair work. Marina Bay desires a profit margin of $8 per hour.
2. The total invoice cost of parts and materials used was $120,000. Marina Bay desires a 20% profit margin on the invoice cost of parts and materials.

Required

Using the time and material pricing

Question 1: Calculate the rate that would be charged per hour of repair service.

Question 2: Calculate the materials loading charge that would be used in billing jobs. The materials loading charge should be expressed as a percentage of the invoice cost.

Question 3: Calculate the charge for a job that requires 50 hours of labor and $3,600 in parts and materials