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Business, 03.08.2021 18:40 19thomasar
Second Chance Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2020 is available for Second Chance.
Time Charges Material Loading Charges
Technicians' wages and benefits $197,600
Parts manager's salary and benefits $39,100
Office employee's salary and benefits 53,200 13,420
Other overhead 30,400 20,800
Total budgeted costs $281,200 $73,320
The company desires a $30.00 profit margin per hour of labor and a 26.00% profit margin on parts. It has budgeted for 7,600 hours of repair time in the coming year, and estimates that the total invoice cost of parts and materials in 2017 will be $386,000.
Required:
a. Compute the rate charged per hour of labor.
b. Compute the material loading percentage.
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