Part C Silver Spoon Service repairs commercial food preparation equipment. The following budgeted cost data...
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Part C Silver Spoon Service repairs commercial food preparation equipment. The following budgeted cost data is available for 2016: Material Charges Charges Time $500,000 Technicians' wages and benefits Parts manager's salary and benefits Office manager's salary and benefits Other overhead Total budgeted costs S72,000 112,000 18,000 48,000 35,000 $660,000 S225,000 Silver Sppon has budgeted for 10,000 hours of technician time during the coming year. 1t desires a S54 profit margin per hour of labor and a 40% profit margin on parts. Silver Spoon estimates the total invoice cost of parts and materials in 2016 will be $500,000. Required: 1. Compute the rate charged per hour of labor. 2. Compute the material loading charge. 3. Silver Spoon has received a request from Lime Corporation for an estimate to repair a commercial fryer. The company estimates that it would take 20 hours of labor and parts costing $8,000. Compute the total estimated price for the repair job
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