Reference no: EM132514786

The following information has been provided by Speedy Car & Maintenance Shoppe:

                                                                                                    Repairs                               Parts

Repair mechanic wages                                                   300,000                         -
Service manager salary                                                    100,000                        -
Parts managersalary                                                            -                          80.000
Employee benefits: 20% of salaries and wagls                       80,000                      16,000
Supplies                                                                                5,000                  5,000
Clerical costs                                                                    15,000                     12,000
Invoice cost on parts used                                                                                 700,000
Total budgeted costs                                                           500,000                   813,000

• The maintenance manager estimates that customers will be billed based on 50,000 hours of repair time.
• In addition, the pro?t will be $15 per hour of repair time. For parts, the competitive markup on invoice cost of parts used will be 30%. Freddie, a student on placement with Speedy Car & Maintenance Shoppe has to prepare an invoice to a customer for a job requiring 8 hours of the mechanic's wages and $300 in parts used. Freddie is confused and needs some help.

Required:

Question 1: Calculate the total amount of the invoice for this job considering the time rate and materials loading charge that would have been determined.