Fred Burgess Diesel Service, Inc. repairs commercial diesel generators used to power heavy equipment and locomotive...

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Fred Burgess Diesel Service, Inc. repairs commercial diesel generators used to power heavy equipment and locomotive motors for the BNSF Railway. The following budgeted cost data is available for 2021: Time Material Charges Charges Technicians' wages and benefits $536,400 Parts manager's salary and benefits $ 90,000 Office manager's salary and benefits 86,400 18,000 Other overhead 37,800 105,000 Total budgeted costs $660,600 $213,000 The company has budgeted for 7,200 hours of technician time during the coming year. It desires a $90 profit margin per hour of labor and a 45% profit margin on parts. It is estimated the total invoice cost of parts and materials in 2021 will be $1,200,000. Required: 1. Compute the rate charged per hour of labor. 2. Compute the material loading charge. 3. Fred has received a request from BNSF Railway for an estimate to repair a diesel generator for their Roseville Locomotive #459. Fred estimates that it would take 36 hours of labor and $20,600 of parts. Compute the total estimated bill. Fred Burgess Diesel Service, Inc. repairs commercial diesel generators used to power heavy equipment and locomotive motors for the BNSF Railway. The following budgeted cost data is available for 2021: Time Material Charges Charges Technicians' wages and benefits $536,400 Parts manager's salary and benefits $ 90,000 Office manager's salary and benefits 86,400 18,000 Other overhead 37,800 105,000 Total budgeted costs $660,600 $213,000 The company has budgeted for 7,200 hours of technician time during the coming year. It desires a $90 profit margin per hour of labor and a 45% profit margin on parts. It is estimated the total invoice cost of parts and materials in 2021 will be $1,200,000. Required: 1. Compute the rate charged per hour of labor. 2. Compute the material loading charge. 3. Fred has received a request from BNSF Railway for an estimate to repair a diesel generator for their Roseville Locomotive #459. Fred estimates that it would take 36 hours of labor and $20,600 of parts. Compute the total estimated bill.

Answer rating: 100% (QA)

1 Compute the rate charged per hour of labor The desired profit margin per hour of labor is 90 To ca... View the full answer