erway Industries has the following budgeted costs for the next year:     Time Charges   Material Charges Shop employees’ wages and benefits   $120000     $            -   Parts manag

Cornerstones of Cost Management (Cornerstones Series)
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Author:Don R. Hansen, Maryanne M. Mowen
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Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 13CE: Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead...
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Waterway Industries has the following budgeted costs for the next year:

    Time Charges   Material Charges

Shop employees’ wages and benefits

  $120000     $            -  

Parts manager’s salary and benefits

  -     50000  

Office employee’s salary and benefits

  45000     15000  

Other overhead

  15000     40000  

Invoice cost of parts and materials

  -     454000  

      Total budgeted costs

 

$180000

   

$559000

 


Next year’s material loading charge, assuming a 30% markup on material cost is

48.78%.

53.00%.

30.00%.

18.78%.     

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