WATERWAYS CORPORATION Budgeted Costs for Irrigation Projects Time Charges Material Loading Charges Labor wages (5,700 hours) $238,260
Question:
WATERWAYS CORPORATION Budgeted Costs for Irrigation Projects | |||||
Time Charges | Material Loading Charges | ||||
Labor wages (5,700 hours) | $238,260 | ||||
Supervisor’s salary | $62,000 | ||||
Clerical and accountant wages | 58,140 | 4,000 | |||
Irrigation supplies manager | 39,000 | ||||
Overhead | 53,010 | 21,720 | |||
Total | $349,410 | $126,720 |
Waterways has budgeted for 5,700 labor hours. It desires a $13 profit margin per hour of labor and 15% profit on materials. It estimates the total invoice cost of materials in the coming year will be $660,000.
A.Compute the rate per hour of labor. (Round answer to 2 decimal places, e.g. 52.75.)
labor rate $74.3
B.Compute the material loading charge.
material loading charge = 35.20% (this is wrong)
C.
Waterways has received a request for a bid to do a parkway for the city. The irrigation manager estimates that it will take about a month to complete the project and require 530 hours of labor and $84,000 of materials. Compute the total estimated bid for the parkway project. (Round answer to 0 decimal places, e.g. 5,275.)
Total estimated bid for the parkway project $ ???????
Managerial Accounting Tools for Business Decision Making
ISBN: 978-1118033890
3rd Canadian edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly