Question #5 Larry Empery's Diesel Service, Inc repairs commercial diesel generators used to power heavy...
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Question #5 Larry Empery's Diesel Service, Inc repairs commercial diesel generators used to power heavy equipment and locomotive motors for the BNSF Railway. The following budgeted cost data is available for 2020: Time Material Charxes Chaces Technicians' wages and benefits $500,000 Parts manager's salary and benefits $ 72.000 Office manager's salary and benefits 112.000 18.000 Other overhead 48.000 135.000 Total budgeted costs $660,000 $225.000 The company has budgeted for 10,000 hours of technician time during the coming year. It desires a $54 profit margin per hour of labor and a 40% profit margin on parts. It is estimated the total invoice cost of parts and materials in 2020 will be $500.000 Required: 1. Compute the rate charged per hour of labor. 2. Compute the material loading charge. 3. Larry has received a request from BNSF Railway for an estimate to repair a diesel generator for their Roseville Locomotive #459. Larry estimates that it would take 20 hours of labor and $8,000 of parts, Compute the total estimated bill
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