Second Chance Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2020...
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Second Chance Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2020 is available for Second Chance.
TimeCharges
MaterialLoadingCharges
Technicians' wages and benefits
$237,000
-
Parts manager's salary and benefits
-
$39,100
Office employee's salary and benefits
71,100
8,900
Other overhead
39,500
19,200
Total budgeted costs
$347,600
$67,200
The company desires a $34 profit margin per hour of labor and a 21.00% profit margin on parts. It has budgeted for 7,900 hours of repair time in the coming year, and estimates that the total invoice cost of parts and materials in 2020 will be $384,000.
(a)
Compute the rate charged per hour of labor.
Labor rate
$enter the rate charged per hour of labor in dollars.
per hour
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