Question - Silver Spoon Service repairs commercial food preparation equipment. The following budgeted cost data is available for 2016:
Time Charges Material Charges Technicians' wages and benefits $500,000
Parts manager's salary and benefits $72,000
Office manager's salary and benefits 112,000 18,000
Other overhead 48,000 135,000
Total budgeted costs $660,000 $225,000
Silver Spoon has budgeted for 10,000 hours of technician time during the coming year. It desires a $54 profit margin per hour of labor and a 40% profit margin on parts. Silver Spoon estimates the total invoice cost of parts and materials in 2016 will be $500,000.
Compute the rate charged per hour of labor.
Compute the material loading charge.
Silver Spoon has received a request from Lime Corporation for an estimate to repair a commercial fryer. The company estimates that it would take 20 hours of labor and $8,000 of parts. Compute the total estimated bill.