Compute the material loading charge percentage for Sutton’s Electronic Repair Shop for the year 2020.
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Sutton’s Electronic Repair Shop has budgeted the following time and material for 2020.
| SUTTON’S ELECTRONIC REPAIR SHOP Budgeted Costs for the Year 2020 |
||||||||
| Time Charges | Material Loading Charges | |||||||
| Shop employees’ wages and benefits | $118,800 | ― | ||||||
| Parts manager’s salary and benefits | ― | $25,400 | ||||||
| Office employee’s salary and benefits | 20,520 | 13,990 | ||||||
| Overhead (supplies, |
28,080 | 20,200 | ||||||
| Total budgeted costs | $167,400 | $59,590 |
Sutton’s budgets 5,400 hours of repair time in 2020 and will bill a profit of $14 per labor hour along with a 21% profit markup on the invoice cost of parts. The estimated invoice cost for parts to be used is $101,000.
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 9 hours of labor and $300 in parts.
Compute the material loading charge percentage for Sutton’s Electronic Repair Shop for the year 2020.
| Material loading percentage |
|
% |
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