question archive Exercise 23-15 Time and materials pricing A1 HH Auto Repair reports the following information for the coming year
Exercise 23-15 Time and materials pricing A1 HH Auto Repair reports the following information for the coming year
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Exercise 23-15 Time and materials pricing A1
HH Auto Repair reports the following information for the coming year.
Labor rate, including fringe benefits $ 43 per labor hour
Annual labor hours 10,700 hours
Annual materials (parts) purchases $2,070,000
Annual overhead costs:
Materials purchasing, handling, and storage $ 289,800
Other overhead (depreciation, insurance, taxes, rent) $171,200
Target profit margin (on both labor and materials) 30 %
1. Compute the price (rate) per hour of direct labor. (Round your answer to 2 decimal places.)
2. Compute the materials markup (in 36).
3. What price should the company quote for a job requiring ?ve labor hours and $650 in parts? (Round your answer to 2 decimal places.)
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