Question

Lemongrass Services uses time and material pricing. The billing rate, or time component, is R110 per hour of repair time, and the material loading charge is 50% of the invoice cost of parts used. Using these rates, calculate the billed amount of a repair job that requires 6 hours of mechanic's time and R300 in parts. R300? R960? R1 110? R990?

Name: lemongrass services uses time and material pricing the billing rate or time component is r110 per hour of repair time and the material loading charge is 50 of the invoice cost of parts used 77169
Uploaded: 2020-07-13T07:22:05-08:00
Duration: 50 s
Channel: Wesley Hines
Description: lemongrass services uses time and material pricing the billing rate or time component is r110 per hour of repair time and the material loading charge is 50 of the invoice cost of parts used 77169

          Lemongrass Services uses time and material pricing. The billing rate, or time component, is R110 per hour of repair time, and the material loading charge is 50% of the invoice cost of parts used. Using these rates, calculate the billed amount of a repair job that requires 6 hours of mechanic's time and R300 in parts. R300? R960? R1 110? R990?

Added by Lisa L.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Wesley Hines

07/13/2020

Step 1

The mechanic's time is billed at R110 per hour, and the repair job requires 6 hours of mechanic's time. Cost of mechanic's time = R110/hour * 6 hours = R660 Show more…

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Lemongrass Services uses time and material pricing. The billing rate, or time component, is R110 per hour of repair time, and the material loading charge is 50% of the invoice cost of parts used. Using these rates, calculate the billed amount of a repair job that requires 6 hours of mechanic's time and R300 in parts. R300? R960? R1 110? R990?