Benson Remanufacturing rebuilds spot welders for manufacturers. The following budgeted cost data for 2011 is available for Benson.

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 2011 will be $400,000.

Instructions
(a) Compute the rate charged per hour of labor.
(b) Compute the material loading percentage. (Round to three decimal places.)
(c) Sharrer Corporation has requested an estimate to rebuild its spot welder. Benson estimates that it would require 40 hours of labor and $2,500 of parts. Compute the total estimatedbill.

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Material Loading Charges Charges Time Technicians' wages and benefits Parts manager's salary and benefits Office employee's salary and benefits Other overhead $228,000 38,000 15,200 $42,500 9,000 24,000 Total budgeted costs $281,200 $75,500