Forrest Painting Service has budgeted the following time and material for 2019: Forrest budgets 4,000 hours of
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Question:
Forrest budgets 4,000 hours of paint time in 2019 and will charge a profit of $12 per hour, in addition to a 25% markup on the cost of paint.
On February 15, 2019, Forrest is asked to prepare a price estimate to paint a building. Forrest estimates that this job will take 12 labor hours and $500 in paint.
Instructions
1. Compute the labor rate for 2019.
2. Compute the material loading charge rate for 2019.3.Prepare a time-and-material price estimate for painting the building.
Related Book For
Managerial Accounting Tools for business decision making
ISBN: 978-1118096895
6th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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