Suttons Electronic Repair Shop has budgeted the following time and material for 2020. SUTTONS ELECTRONIC REPAIR SHOP
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Sutton’s Electronic Repair Shop has budgeted the following time and material for 2020.
SUTTON’S ELECTRONIC REPAIR SHOP Budgeted Costs for the Year 2020 | ||||||||
Time Charges | Material Loading Charges | |||||||
Shop employees’ wages and benefits | $99,820 | ― | ||||||
Parts manager’s salary and benefits | ― | $25,400 | ||||||
Office employee’s salary and benefits | 17,480 | 15,550 | ||||||
Overhead (supplies, depreciation, advertising, utilities) | 25,300 | 21,000 | ||||||
Total budgeted costs | $142,600 | $61,950 |
Sutton’s budgets 4,600 hours of repair time in 2020 and will bill a profit of $9 per labor hour along with a 20% profit markup on the invoice cost of parts. The estimated invoice cost for parts to be used is $105,000.
On January 5, 2020, Sutton’s is asked to submit a price estimate to fix a 72-inch flat-screen TV. Sutton’s estimates that this job will consume 9 hours of labor and $300 in parts.
(a)
Compute the labor rate for Sutton’s Electronic Repair Shop for the year 2020.
Labour rate | $Type your answer here | per hour |
Related Book For
Managerial Accounting Tools for Business Decision Making
ISBN: 978-1119036432
7th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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