Reference no: EM132510590

Budgeted data for Mohawk Waste Handling & Disposal Ltd. for the current year are as follows:

                                       Waste Processing Charges             Waste Handling

ChargesTechnicians' wages and fringe benefits$182,280

Manager's salary and fringe benefits$91,238

Administrative salaries and fringe benefits73,080                                 31,556

Other overhead costs                31,920                                         65,170

Total budgeted costs                     $287,280                                $187,964

• Mohawk receives waste to be disposed of from various customers, incurring a waste disposal charge that it recovers from its customers on a cost recovery basis. Mohawk also incurs waste processing and waste handling costs related to the initial receiving of the waste and getting it ready for disposal.
• For waste processing, Mohawk budgets 8,400 hours of work in 2020, and it desires a profit margin of $7.00 per hour of labour.
• For waste handling, it wants to earn a 25.00% profit based on waste disposal fees. It estimates the total invoice cost for waste disposal charges in 2020 will be $686,000. Waste handling costs are assigned based on a percentage of waste disposal charges.

Question a) Calculate the rate charged per hour of labour.

Question b) Determine the markup percentage on waste disposal charges. Include waste handling costs in the analysis. (Round answer to 2 decimal places, e.g. 15.25%.)

Question c) If Mohawk completes a job that takes 35 hours and incurs waste disposal charges costing $130, what is the invoice price? (Round answer to 2 decimal places, e.g. 15.25.)