J& B Appliance provides repair services for all makes and models of home appliances. J& B Appliance charges customers for labor on each job at a rate of $ 76 per hour. The labor rate is high enough to cover actual technician wages of $ 29 per hour, to cover shop overhead (allocated at a cost of $ 22 per hour), and to provide a profit. The company charges the customer “at cost” for parts and materials. A recent customer job consisted of $ 40 in parts and materials and 2 hours of technician time.
1. What was J& B Appliance’s cost for this job? Include shop overhead in the cost calculation.
2. How much was charged to the customer for this repair job?

  • CreatedAugust 27, 2014
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