Question: Sunland Custom Electronics (SCE) sells and installs complete security, computer, audio, and video systems for homes. On newly constructed homes it provides bids using time-and-material

Sunland Custom Electronics (SCE) sells and installs complete security, computer, audio, and video systems for homes. On newly constructed homes it provides bids using time-and-material pricing. The following budgeted cost data are available.

	Time Charges	Material Loading Charges
Technicians' wages and benefits	$166,400	-
Parts manager's salary and benefits	-	$34,800
Office employee's salary and benefits	26,880	17,280
Other overhead	17,280	44,640
Total budgeted costs	$210,560	$96,720

The company has budgeted for 6,400 hours of technician time during the coming year. It desires a $39 profit margin per hour of labor and an 80% profit on parts. It estimates the total invoice cost of parts and materials in 2020 will be $744,000.

Compute the rate charged per hour of labor. (Round answer to 2 decimal places, e.g. 10.50.)

Labor rate

per hour

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Compute the material loading percentage.

Material loading percentage

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RCE has just received a request for a bid from Buil Builders on a $1,247,000 new home. The company estimates that it would require 80 hours of labor and $35,500 of parts. Compute the total estimated bill.

Total estimated bill

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