Solution-Compute the labor rate for joses electronic repair

Compute the labor rate for joses electronic repair shop

Assignment Help Cost Accounting

Reference no: EM13888797

Jose's Electronic Repair Shop has budgeted the following time and material for 2014.

Jose's Electronic Repair Shop Budgeted Costs for the Year 2014
Material	Time Charges	Loading Charges
Shop employees' wages and benefits Parts manager's salary and benefits	$108,000	$25,400
Office employee's salary and benefits	23,500	13,600
Overhead (supplies, depreciation, advertising, utilities)	26,000	16,000
Total budgeted costs	$157,500	$55,000

Jose's budgets 5,000 hours of repair time in 2014 and will bill a profit of $5 per labor hour along with a 30% profit markup on the invoice cost of parts. The estimated invoice cost for parts to be used is $100,000.

On January 5, 2014, Jose's is asked to submit a price estimate to fix a 72-inch flat- screen TV. Jose's estimates that this job will consume 5 hours of labor and $200 in parts.

Instructions

(a) Compute the labor rate for Jose's Electronic Repair Shop for the year 2014.

(b) Compute the material loading charge percentage for Jose's Electronic Repair Shop for the year 2014.

Reference no: EM13888797

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Compute the labor rate for joses electronic repair shop

Reference no: EM13888797

Reference no: EM13888797

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