Wasson's Classic Cars restores classic automobiles to showroom status. Budgeted data for the current year are as follows. Time
Material
Loading
Charges
Charges
$292,600
Restorers' wages and fringe benefits
Purchasing agent's salary and fringe benefits
Administrative salaries and fringe benefits
Other overhead costs
Total budgeted costs
53,200
13,300
$359,100
$69,930
21,000
77,940
$168,870
The company anticipated that the restorers would work a total of 13,300 hours this year. Expected parts and materials were
$1.299,000.
In late January, the company experienced a fire in its facilities that destroyed most of the accounting records. The accountant
remembers that the hourly labor rate was $69 and that the material loading charge was 82%.
(a)
Determine the profit margin per hour on labor.
Profit margin on labor
$
per hour