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Dowhiua .Hts- RARBG Facebook WileyPLUS Exercise M-9 d Exercise M-9 Rey Custom Electronics (RCE) 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 ChargesCharges Material Loading Technicians\' wages and benefits $169,495 Parts manager\'s salary and benefits Office employee\'s salary and benefits 30,028 Other overhead Total budgeted costs $34,700 6,880 38,947 $214,505$80,527 14,982 The company has budgeted for 6,430 hours of technician time during the coming year. It desires a $38.26 profit margin per 2017 will be $693,000. hour of labor and an 80% profit on parts. It estimates the total invoice cost of parts and materials in E3 Your answer is incorrect. Try again. Compute the rate charged per hour of labor. (Round answer to 2 decimal places, e.g. 10.50.) Labor rate 104.98 per hour

Solution

Amount in $ Amount in $ 1 Computation of rate Charged per hour Total 6430 Hours Per Hour = Total / 6430 Technicians’ wages and benefits 169495                                26.36 Office employee’s salary and benefits 30028                                   4.67 Other Over head 14982                                   2.33                                33.36 Add: Desired Profit margin Per Labour hour 38.26 Rate charged Per direct labour Hour                                71.62 2 Computation of Materials Loading persentage Material Charges Total invoice cost, parts & materials Material Loading charge Parts manager salary & benefits 34700 Office Employee Salary & benefits 6880 41580 693000 6.00% 41580/693000 *100 Other over head 38947 693000 5.62% 38947/693000 *100 Profit margin 80.00% materials Loading charge 91.62% 3 Total Estimated Bill Labour charges 76 Hours at $71.62 Per hour   76*$71.62 $5443.12 Material Charges Cost of Parts and materials $38200 materials Loading charge ($38200*91.62%) $34998.84 $73198.84 Total price for Labour & materials $78641.96