ACC 560 Week 5 Assignment
E8-8 Padong Remanufacturing rebuilds spot welders for manufacturers. The following budgeted cost data for 2008 is available for Padong.
Time Charges Material Loading Charges
Technicians' wages and benefits $228,000 -
Parts manager's salary and benefits - $42,500
Office employee's salary and benefits 38,000 9,000
Other overhead 15,200 24,000
Total budgeted costs $281,200 $75,500
The company desires a $35 profit margin per hour of labor and a 25% profit margin on parts. It has budgeted for 7,600 hours of repair time in the coming year, and estimates that the total invoice cost of parts and materials in 2008 will be $400,000.
Instrutions:
a) Compute the rate charged per hour of labor.
b) Compute the material loading percentage.
c) Lindy Corporation has requested an estimate to rebuild its spot welder. Padong estimates that it would require 40 hours of labor and $2,500 of parts. Compute the total estimated bill.
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