Wasson’s Classic Cars restore classic automobiles to showroom status. Budgeted data for the current year are as follows.

The company anticipated that the restorers would work a total of 12,000 hours this year. Expected parts and materials were $1,260,000. In late January, the company experienced a fire in its facilities that destroyed most of the accounting records. The accountant remembers that the hourly labor rate was $70.00 and that the material loading
the charge was 83.25%.

Instructions

a. Determine the profit margin per hour on labor.

b. Determine the profit margin on materials.

c. Determine the total price of labor and materials on a job that was completed after the fire that required 150 hours of labor and $60,000 in parts and materials.

Transcribed Image Text:

Material Time Loading Charges Charges Restorers' wages and fringe benefits Purchasing agent's salary and fringe benefits Administrative salaries and fringe benefits $270,000 $ 67,500 54,000 21,960 Other overhead costs 24,000 77,490 Total budgeted costs $348,000 $166,950