Question

Waterway Custom Electronics (WCE) sells and installs complete security, computer, audio, and video systems for homes. On newly constructed homes it provides bids using time-and-material pricing. The following budgeted cost data are available. Material Time Loading Charges Charges Technicians' wages and benefits $128,800 Parts manager's salary and benefits $33,500 Office employee's salary and benefits 25,200 17,880 Other overhead 13,440 44,040 Total budgeted costs $167,440 $95,420 The company has budgeted for 5,600 hours of technician time during the coming year. It desires a $39 profit margin per hour of labor and an 80% profit on parts. It estimates the total invoice cost of parts and materials in 2020 will be $734,000. (a) Compute the rate charged per hour of labor. (Round answer to 2 decimal places, e.g. 10.50.) Labor rate $ per hour

          Waterway Custom Electronics (WCE) sells and installs complete security, computer, audio, and video systems for homes. On newly
constructed homes it provides bids using time-and-material pricing. The following budgeted cost data are available.
Material
Time
Loading
Charges
Charges
Technicians' wages and benefits
$128,800
Parts manager's salary and benefits
$33,500
Office employee's salary and benefits
25,200
17,880
Other overhead
13,440
44,040
Total budgeted costs
$167,440
$95,420
The company has budgeted for 5,600 hours of technician time during the coming year. It desires a $39 profit margin per hour of labor
and an 80% profit on parts. It estimates the total invoice cost of parts and materials in 2020 will be $734,000.
(a)
Compute the rate charged per hour of labor. (Round answer to 2 decimal places, e.g. 10.50.)
Labor rate
$
per hour

Waterway Custom Electronics (WCE) sells and installs complete security, computer, audio, and video systems for homes. On newly
constructed homes it provides bids using time-and-material pricing. The following budgeted cost data are available.
Material
Time
Loading
Charges
Charges
Technicians' wages and benefits
128,800
Parts manager's salary and benefits33,500
Office employee's salary and benefits
25,200
17,880
Other overhead
13,440
44,040
Total budgeted costs
167,44095,420
The company has budgeted for 5,600 hours of technician time during the coming year. It desires a 39 profit margin per hour of labor
and an 80% profit on parts. It estimates the total invoice cost of parts and materials in 2020 will be $734,000.
(a)
Compute the rate charged per hour of labor. (Round answer to 2 decimal places, e.g. 10.50.)
Labor rate
per hour

Added by Cynthia J.

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