Padong Remanufacturing rebuilds spot welders for manufacturers. The following budgeted cost data for 2008 is available for Padong
Time
Charges Material Loading Charges
- Technicians' wages and benefits $265,200.00 -
- Parts manager's salary and benefits - $44,220.00
- Office employee's salary and benefits 60,840.00 11,055.00
- Other overhead 39,000.00 27,135.00
Total budgeted costs $365,040.00 $82,410.00
The company desires a $38.00 profit margin per hour of labor and a 25% profit margin on parts. It has budgeted for 7,800 hours of repair time in the coming year, and estimates that the total invoice cost of parts and materials in 2008 will be $402,000.
INSTRUCTIONS
-Compute the rate charged per hour of labor. (Round answer to 2 decimal places, e.g. 10.50.)
-Compute the material loading percentage. (Round answer to 2 decimal places, e.g. 10.50.)
-Lindy Corporation has requested an estimate to rebuild its spot welder. Padong estimates that it would require 40 hours of labor and $2,800.00 of parts. Compute the total estimated bill.