Chapter 21
Concord Corporation has the following budgeted costs for the next year:
Theme Charges: $165,000
Material Charges: $50,000
Shop employees' wages and benefits: $40,000
Parts manager's salary and benefits: $15,000
Office employee's salary and benefits: $60,000
Other overhead: $43,500
Invoice cost of parts and materials: $15,000
Total budgeted costs: $220,000
The labor rate to be used next year, assuming 10,000 hours of repair time and a profit margin of $25 per labor hour, is $47.