Question: Budgeted data for Mohawk Waste Handling & Disposal Ltd. for the current year are as follows: Waste Processing ChargesWaste Handling Charges Technicians' wages and fringe
Budgeted data for Mohawk Waste Handling & Disposal Ltd. for the current year are as follows:
Waste
Processing
ChargesWaste
Handling
ChargesTechnicians' wages and fringe benefits$182,280Manager'ssalary and fringe benefits$91,238Administrative salaries and fringe benefits73,08031,556Other overhead costs31,92065,170Total budgeted costs$287,280$187,964
Mohawk receives waste to be disposed of from various customers, incurring a waste disposal charge that it recovers from its customers on a cost recovery basis. Mohawk also incurs waste processing and waste handling costs related to the initial receiving of the waste and getting it ready for disposal.
For waste processing, Mohawk budgets8,400hours of work in 2020, and it desires a profit margin of $7.00per hour of labour.
For waste handling, it wants to earn a25.00% profit based on waste disposal fees. It estimates the total invoice cost for waste disposal charges in 2020 will be $686,000. Waste handling costs are assigned based on a percentage of waste disposal charges.
a) Calculate the rate charged per hour of labour.
b) Determine the markup percentage on waste disposal charges. Include waste handling costs in the analysis.(Round answer to 2 decimal places, e.g. 15.25%.)
c) If Mohawk completes a job that takes35hours and incurs waste disposal charges costing $130, what is the invoice price?(Round answer to 2 decimal places, e.g. 15.25.)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
