Calculate the rate charged per hour of labour

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Question - Sandhill Remanufacturing rebuilds spot welders for manufacturers. The following budgeted cost data for 2022 are available for Sandhill:

 

Time Charges

Material Loading Charges

Technicians' wages and benefits

$192,240


Parts manager's salary and benefits


$40,260

Office employee's salary and benefits

56,960

11,895

Other overhead

28,480

18,300

Total budgeted costs

$277,680

$70,455

The company wants a $40 profit margin per hour of labour and a 20% profit margin on parts. It has budgeted for 7,120 hours of repair time in the coming year and estimates that the total invoice cost of parts and materials in 2022 will be $366,000.

Required - Calculate the rate charged per hour of labour.

Reference no: EM133129606

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