Do It! Review 22-3 Presented below are data relating to labor for Verde Applianc
ID: 2528727 • Letter: D
Question
Do It! Review 22-3 Presented below are data relating to labor for Verde Appliance Repair Shop. Repair-technicians' wages Fringe benefits Overhead $142,184 41,104 62,216 The desired profit margin per hour is $20.55. The material loading charge is 60% of invoice cost. Verde estimates that 5,600 labor hours will be worked next year. If Verde repairs a dishwasher that takes 1.6 hours to repair and uses parts of $81.50, compute the bill for the job. (Round answer to 2 decimal places, e.g. 10.50.) Total cost LINK TO TEXTExplanation / Answer
Solution: Total cost : 233.42
Working:
Repair-technicians’ wages
142,184
5,600
25.39
Fringe benefits
41,104
5,600
7.34
Overhead
62,216
5,600
11.11
245,504
43.84
Profit margin
20.55
Rate charged per hour of labor
64.39
Material cost
81.50
Material loading charges (81.5*60%)
48.90
Total material cost
130.40
Cost of dishwasher repair
Labor costs (64.39 * 1.6)
103.02
Material cost
130.40
Total repair cost
233.42
Repair-technicians’ wages
142,184
5,600
25.39
Fringe benefits
41,104
5,600
7.34
Overhead
62,216
5,600
11.11
245,504
43.84
Profit margin
20.55
Rate charged per hour of labor
64.39
Material cost
81.50
Material loading charges (81.5*60%)
48.90
Total material cost
130.40
Cost of dishwasher repair
Labor costs (64.39 * 1.6)
103.02
Material cost
130.40
Total repair cost
233.42
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