Padong Remanufacturing rebuilds spot welders for manufacturers. The following bu
ID: 2389105 • Letter: P
Question
Padong Remanufacturing rebuilds spot welders for manufacturers. The following budgeted cost data for 2006 is available for Padong.Time Charges Material Loading Charges
Technicians' wages and benefits $228,000 –
Parts manager's salary and benefits – $42,500
Office employee's salary and benefits 38,000 9,000
Other overhead 15,200 24,000
Total budgeted costs $281,200 $75,500
The company desires a $35 profit margin per hour of labor and a 25% profit margin on parts. It has budgeted for 7,600 hours of repair time in the coming year, and estimates that the total invoice cost of parts and materials in 2006 will be $400,000.
1. Compute the rate charged per hour of labor.
Explanation / Answer
Technician's wages and Benefits 228000 Office Employee's Salary and Benefits 38000 Other Over Head 15200 Total Budgeted Cost 281200 Budgeted Hours 7600 Rate charged per Labor hour 37
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