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Jose's Electronic Repair Shop has budgeted the following time and material for 2014

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Jose's Electronic Repair Shop has budgeted the following time and material for 2014.

Jose's Electronic Repair Shop Budgeted Costs for the Year 2014.

 

	Time Charges	Material Loading Charges
Shop employees' wages and benefits	$105,339	-
Parts manager's salary and benefits	-	$24,437
Office employee's salary and benefits	20,202	17,301
Overhead (supplies, depreciation, advertising, utilities)	23,088	19,342
Total budgeted costs	$148,629	$61,080

Jose's budgets 4,810 hours of repair time in 2014 and will bill a profit of $4 per labor hour along with a 30% profit markup on the invoice cost of parts.

The estimated invoice cost for parts to be used is $101,800.

On January 5, 2014, Jose's is asked to submit a price estimate to fix a 72-inch flat-screen TV.

Jose's estimates that this job will consume 17 hours of labor and $339 in parts.

1. Compute the labor rate for Jose's Electronic Repair Shop for the year 2014.

(Round answer to 2 decimal places, e.g. 10.50.)

 

Labour rate

$ _per hour

2. Compute the material loading charge percentage for Jose's Electronic Repair Shop for the year 2014.

 

Material loading percentage

%

3. Prepare a time-and-material price quotation for fixing the flat-screen TV.

(Round answers to 2 decimal places, e.g. 10.50.)

JOSE'S ELECTRONIC REPAIR SHOP

Time and Material Price Quotation

January 5, 2014

 

Job: Fix big screen TV set
Labor charges	$
Material charges
Cost of parts and materials	$
Material loading charge
Total price of labor and material		$