Question: Apple offers device service and repair through its AppleCare program. Assumed data follow. Direct labor...

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Question: Apple offers device service and repair through its AppleCare program. Assumed data follow. Direct labor rate. $40 per direct labor hour $10 per direct labor hour Non-materials-related overhead .. Materials-related overhead .... 4% of direct materials cost Target profit margin (on both conversion and direct materials) 40% Required 1. Compute time charge per hour of direct labor (in $). 2. Compute materials markup per dollar of direct material cost (in %). 3. Use time and materials pricing to compute the price for a local college. Apple estimates the obligation to this college will require 1,000 direct labor hours and $35,000 of direct materials cost. Question: Apple offers device service and repair through its AppleCare program. Assumed data follow. Direct labor rate. $40 per direct labor hour $10 per direct labor hour Non-materials-related overhead .. Materials-related overhead .... 4% of direct materials cost Target profit margin (on both conversion and direct materials) 40% Required 1. Compute time charge per hour of direct labor (in $). 2. Compute materials markup per dollar of direct material cost (in %). 3. Use time and materials pricing to compute the price for a local college. Apple estimates the obligation to this college will require 1,000 direct labor hours and $35,000 of direct materials cost.

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1 Total rate of labor 40 10 50 Markup per... View the full answer