Blossom's Classic Cars restores classic automobiles to showroom status. Budgeted data for the current year are as follows:
Time Charges
Material Loading Charges
Restorers' wages and benefits
$334,800
Purchasing agent's salary and benefits
$83,700
Administrative salaries and benefits
74,400
27,900
Other overhead costs
24,800
226,800
Total budgeted costs
$434,000
$338,400
The company anticipated that the restorers would work a total of 10,000 hours this year. Expected parts and materials were
$1,200,000.
In late January, the company experienced a fire in its facilities that destroyed most of the accounting records. The accountant
remembers that the hourly labor rate was $60.00 and that the material loading charge was 83.80%.
