Wassons Classic Cars restores classic automobiles to showroom status. Budgeted data for the current year...
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Accounting
Wassons Classic Cars restores classic automobiles to showroom status. Budgeted data for the current year are as follows.
TimeCharges
MaterialLoadingCharges
Restorers' wages and fringe benefits
$231,000
Purchasing agent's salary and fringe benefits
$81,520
Administrative salaries and fringe benefits
52,500
20,000
Other overhead costs
10,500
76,140
Total budgeted costs
$294,000
$177,660
The company anticipated that the restorers would work a total of 10,500 hours this year. Expected parts and materials were $1,269,000. In late January, the company experienced a fire in its facilities that destroyed most of the accounting records. The accountant remembers that the hourly labor rate was $71 and that the material loading charge was 83%.
(a)
Determine the profit margin per hour on labor. (Round intermediate calculations to 2 decimal places, e.g. 10.25 and final answer to 0 decimal places, e.g. 10.)
Profit margin on labor
$Type your answer here
per hour
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