Padong Remanufacturing rebuilds spot welders for manufacturers. The following budgeted cost data for 2012 are available for

Question:

Padong Remanufacturing rebuilds spot welders for manufacturers. The following budgeted cost data for 2012 are available for Padong:
Padong Remanufacturing rebuilds spot welders for manufacturers. The following budgeted

The company wants a $35 profit margin per hour of labour 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 2012 will be $400,000.
Instructions
(a) Calculate the rate charged per hour of labour.
(b) Calculate the material loading percentage. (Round to three decimal places.)
(c) Lindy Corporation has asked for an estimate on rebuilding its spot welder. Padong estimates that it would require 40 hours of labour and $2,500 in parts. Calculate the total estimated bill.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Managerial Accounting Tools for Business Decision Making

ISBN: 978-1118033890

3rd Canadian edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly

Question Posted: