Problem: Padong Remanufacturing rebuilds spot welders for manufacturers. The following budgeted cost data for 2006 is available for Padong.
The company desires a $35 profit margin per hour of labor and a 25% 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 2006 will be $400,000.
Instructions:
1. Compute the rate charged per hour of labor.
2. Compute the material loading percentage. (Round to three decimal places.)
3. Lindy Corporation has requested an estimate to rebuild its spot welder. Padong estimates that it would require 40 hours of labor and $2,500 of parts. Compute the total estimated bill.
1._________________ Rate per hour
2. _________________ Material loading per centage
3. _________________ Compute bill