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
