ACC 560 MART Start With a Dream /acc560mart.com ACC 560 MART Start With a Dream /acc560mart.com | Page 37

Time Charges Material
Loading Charges
Technicians' wages and benefits
—
$150,000
—
Parts manager's salary and benefits
$34,000
Office employee's salary and benefits
15,000
30,000
Other overhead
42,000
Total budgeted costs
$91,000
15,000
$195,000
The company has budgeted for 6,250 hours of technician time during
the coming year. It desires a $38 profit margin per hour of labor and
an 80% profit on parts. It estimates the total invoice cost of parts and
materials in 2017 will be $700,000.
Instructions
a. Compute the rate charged per hour of labor.
b. Compute the material loading percentage.
c. RCE has just received a request for a bid from Buil Builders on a
$1,200,000 new home. The company estimates that it would require 80
hours of labor and $40,000 of parts. Compute the total estimated bill.
P8-5A