Southern Tier Heating, Inc., installs heating systems in new homes built in the southern tier counties of
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Question:
Southern Tier Heating, Inc., installs heating systems in new homes built in the southern tier counties of New York state. Jobs are priced using the time and materials method. The president of Southern Tier Heating, B T Ewing, is pricing a job involving the heating systems for six houses to be built by a local developer. He has made the following estimates.
Material cost $
Labor hours
The following predictions pertain to the companys operations for the next year.
Labor rate, including fringe benefits $ per hour
Annual labor hours hours
Annual overhead costs:
Material handling and storage $
Other overhead costs $
Annual cost of materials used $
Required:
Southern Tier Heating adds a markup of $ per hour on its time charges, but there is no markup on material costs.
Calculate the company\'s time charges and the material charges percentage. Round \"Time charges\" answer to decimal places.
Compute the price for the job. Do not round intermediate calculations.
What would be the price of the job if Southern Tier Heating also added a markup of percent on all material charges including material handling and storage costsDo not round intermediate calculations.
Expert Answer:
1 To calculate the companys time charges and the material charges percentage Time Charges Labor Rate ... View the full answer
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