Sutton's Electronic Repair Shop has budgeted the following time and material for 2017.

Sutton's budgets 5,000 hours of repair time in 2017 and will bill a profit of $10 per labor hour along with a 25% profit markup on the invoice cost of parts. The estimated invoice cost for parts to be used is $100,000.
On January 5, 2017, Sutton's is asked to submit a price estimate to fix a 72-inch flat-screen TV. Sutton's estimates that this job will consume 4 hours of labor and $200 in parts.
Instructions
(a) Compute the labor rate for Sutton's Electronic Repair Shop for the year 2017.
(b) Compute the material loading charge percentage for Sutton's Electronic Repair Shop for the year 2017.
(c) Prepare a time-and-material price quotation for fixing the flat-screen TV.

Transcribed Image Text:

SUTTON'S ELECTRONIC REPAIR SHOP Budgeted Costs for the Year 2017 Material Loading Charges Charges Time Shop employees' wages and benefits Parts manager's salary and benefits Office employee's salary and benefits Overhead (supplies, depreciation, advertising, utilities) Total budgeted costs $108,000 23,500 26,000 $25,400 13,600 16,000 157500 $55,000