Cullumber's Klassic Kars restores classic automobiles to showroom status. Budgeted data for the current year are as follows:
Time Charges
Material Loading
Charges
Restorers' wages and fringe benefits
$303,600
Purchasing agent's salary and fringe benefits
$63,759
Administrative salaries and fringe benefits
59,340
19,248
Other overhead costs
24,840
74,586
Total budgeted costs
$387,780
$157,593
The company anticipated that the restorers would work a total of 13,800 hours this year and expected that parts and materials would
cost $1,203,000.
In late January, the company experienced a fire in its facilities that destroyed most of the accounting records. The accountant
remembers that the hourly labour rate was $67 and that the material loading charge was 90.00%.
(a)
* Your answer is incorrect.
Determine the profit margin per hour on labour. (Round answer to 2 decimal places, e.g. 5.25.)
Profit margin
$
39 per hour
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(c)
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