Boyles Body Shop repairs automobiles that have been involved in collisions. Its budget information follows: Budgeted direct
Fantastic news! We've Found the answer you've been seeking!
Question:
Boyle’s Body Shop repairs automobiles that have been involved in collisions. It’s budget information follows:
Budgeted direct labor cost $200,000
Budgeted overhead 500,000
Budgeted labor rate per hour $10
Since all of Boyle’s technicians are paid the same rate, Boyle allocates overhead to jobs based on direct labor hours. Paul Evans brought his car to Boyle for fender repair. It took 5 hours and the new parts for the job totaled $200. If Evans was charged $500, what was the percentage of profit to the selling price?
a. 35%
b. 60%
c. 50%
d. 25%
Related Book For
Business and Professional Ethics
ISBN: 978-1285182223
7th edition
Authors: Leonard J. Brooks, Paul Dunn
Posted Date: