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Question - Silver Spoon Service repairs commercial food preparation equipment. The following budgeted cost data is available for 2019: Time Charges Material Charges $500,000Technician's wages & benefits Parts manager's salary & benefits Office managers salary & benefits Other overhead Total budgeted costs $112,000 $48,000 $660,000 $72,000 $18,000 $135,000 $225,000 Silver Spoon has budgeted for 10,000 hours of technician time during the coming year. It desires a $54 profit margin per hour of labor and a 40% profit margin on parts. Silver Spoon estimates the total invoice cost of parts and materials in 2019 will be $ 500,000.
Instructions -
1. Compute the rate charged per hour of labor.
2. Compute the material loading charge.
3. Silver Spoon has received a request from Lime Corporation for an estimate to repair a commercial fryer. The company estimates that it would take 20 hours of labor and $8,000 of parts. Compute the total estimated bill.
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