Karl's Klassic Kars restores 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 and expected that parts and materials would cost $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 labour rate was $70.00 and that the material loading charge was 83.25%.
Instructions
(a) Determine the profit margin per hour on labour.
(b) Determine the profit margin on materials.
(c) Determine the total price of labour and materials on a job that was completed after the fire that required 150 hours of labour and $60,000 in parts and materials.

Transcribed Image Text:

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