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please help *Exercise 22-9 (Part Level Submission) Rey Custom Electronics (RCE)

ID: 2431657 • Letter: P

Question

please help

*Exercise 22-9 (Part Level Submission) Rey Custom Electronics (RCE) 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 Time Charges 145,738 Material Loading Charges Technicians' wages and benefits Parts manager's salary and benefits Office employee's salary and benefits Other overhead Total budgeted costs 33,800 13,450 39,352 86,602 26,370 12,247 $ 184,355 The company has budgeted for 5,860 hours of technician time during the coming year. It desires a $ 37.00 profit margin per hour of labor and an 80% profit on parts. It estimates the total invoice cost of parts and materials in 2017 wl be675,000 Compute the rate charged per hour of labor. (Round answer to 2 decimal places, e.g. 10.50.) Labor rate per hour Attempts: 0 of 3 used The parts of this question must be completed in order. This part will be available when you complete the part above. The parts of this question must be completed in order. This part will be available when you complete the part above.

Explanation / Answer

Computation of Rate charged per hour of labour :-

Particulars

Amount

Total Hrs

Per Hour charged

Technician wages & Benefits

145738

5860

24.87

Ofc Employee salaries & Benefits

26370

5860

4.5

Other O/H

12247

5860

2.09

Total

184355

5860

31.46

(+) Profit Margin

37

Labur Rate per hour

99.92

Particulars

Amount

Total Hrs

Per Hour charged

Technician wages & Benefits

145738

5860

24.87

Ofc Employee salaries & Benefits

26370

5860

4.5

Other O/H

12247

5860

2.09

Total

184355

5860

31.46

(+) Profit Margin

37

Labur Rate per hour

99.92