2. AP Sutton's Electronic Repair Shop has budgeted the following time and material for 2020. d Sutton's Electronic Repair Shop Budgeted Costs for the Year 2020 Time Charges Material Loading Charges Aatici, Shop employees' wages and benefits $108,000 Parts manager's salary and benefits $25,400 - Office employee's salary and benefits 13,600 23,500 Overhead (supplies, depreciation, advertising, utilities) 26,000 16,000 Total budgeted costs Sutton's budgets 5,000 hours of repair time in 2020 and will bill a profit of $10 per labor hour along with a 25% profit markup on the invoice cost of parts. The estimated invoice cost for parts to be used is $100,00o. $157,500 $55,000 ect 15 On January 5, 2020, Sutton's is asked to submit a price estimate to fix a 72-inch flat- screen TV. Sutton's estimates that this job will consume 4 hours of labor and $200 in parts. Instructions a. Compute the labor rate for Sutton's Electronic Repair Shop for the year 2020. b. Compute the material loading charge percentage for Sutton's Electronic Repair Shop for the year 2020. c. Prepare a time-and-material price quotation for fixing the flat-screen TV. theveur Showdakreacly roduct e dt prodt
2. AP Sutton's Electronic Repair Shop has budgeted the following time and material for 2020. d Sutton's Electronic Repair Shop Budgeted Costs for the Year 2020 Time Charges Material Loading Charges Aatici, Shop employees' wages and benefits $108,000 Parts manager's salary and benefits $25,400 - Office employee's salary and benefits 13,600 23,500 Overhead (supplies, depreciation, advertising, utilities) 26,000 16,000 Total budgeted costs Sutton's budgets 5,000 hours of repair time in 2020 and will bill a profit of $10 per labor hour along with a 25% profit markup on the invoice cost of parts. The estimated invoice cost for parts to be used is $100,00o. $157,500 $55,000 ect 15 On January 5, 2020, Sutton's is asked to submit a price estimate to fix a 72-inch flat- screen TV. Sutton's estimates that this job will consume 4 hours of labor and $200 in parts. Instructions a. Compute the labor rate for Sutton's Electronic Repair Shop for the year 2020. b. Compute the material loading charge percentage for Sutton's Electronic Repair Shop for the year 2020. c. Prepare a time-and-material price quotation for fixing the flat-screen TV. theveur Showdakreacly roduct e dt prodt
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 9E: Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost...
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