FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Oriole Remanufacturing rebuilds spot welders for manufacturers. The following budgeted cost data for 2022
are available for Oriole:
Time Charges
Material Loading Charges
Technicians' wages and benefits
$260,700
Parts manager's salary and benefits
$36,960
Office employee's salary and benefits
63,200
16,720
Other overhead
23,700
25,520
Total budgeted costs
$347,600
$79,200
The company wants a $35 profit margin per hour of labour and a 30% profit margin on parts. It has budgeted
for 7,900 hours of repair time in the coming year and estimates that the total invoice cost of parts and
materials in 2022 will be $352,000.
(a)
Your answer is correct.
Calculate the rate charged per hour of labour.
Rate charged
eTextbook and Media
79 per hour
Attempts: 1 of 2 used
(b)
Calculate the material loading percentage. (Round answer to 3 decimal places, e.g. 15.251%.)
Material loading percentage
eTextbook and Media
Save for Later
%
Attempts: 0 of 2 used Submit Answer
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Transcribed Image Text:Oriole Remanufacturing rebuilds spot welders for manufacturers. The following budgeted cost data for 2022 are available for Oriole: Time Charges Material Loading Charges Technicians' wages and benefits $260,700 Parts manager's salary and benefits $36,960 Office employee's salary and benefits 63,200 16,720 Other overhead 23,700 25,520 Total budgeted costs $347,600 $79,200 The company wants a $35 profit margin per hour of labour and a 30% profit margin on parts. It has budgeted for 7,900 hours of repair time in the coming year and estimates that the total invoice cost of parts and materials in 2022 will be $352,000. (a) Your answer is correct. Calculate the rate charged per hour of labour. Rate charged eTextbook and Media 79 per hour Attempts: 1 of 2 used (b) Calculate the material loading percentage. (Round answer to 3 decimal places, e.g. 15.251%.) Material loading percentage eTextbook and Media Save for Later % Attempts: 0 of 2 used Submit Answer
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