Crane's Custom Electronics (CCE) sells and installs complete security, computer, audio, and video systems for homes. On newly constructed homes, it provides bids using time-and-material pricing. The following budgeted cost data are available: Material Loading Charges Time Charges Technicians' wages and benefits $154,180 Parts manager's salary and benefits $33,408 Office employee's salary and benefits 25,499 11,832 Other overhead 17,197 41,760 Total budgeted costs $196,876 $87,000 The company has budgeted for 5,930 hours of technician time during the coming year. It wants a $41 profit margin per hour of labour and a 100% profit on parts. It estimates the total invoice cost of parts and materials in 2022 will be $696,000. (a) (b) Calculate the material loading percentage. (Round answer to 2 decimal places, e.g. 15.25%.) Material loading Q Search %

Crane's Custom Electronics (CCE) sells and installs complete security, computer, audio, and video systems for homes. On newly constructed homes, it provides bids using time-and-material pricing. The following budgeted cost data are available: Material Loading Charges Time Charges Technicians' wages and benefits $154,180 Parts manager's salary and benefits $33,408 Office employee's salary and benefits 25,499 11,832 Other overhead 17,197 41,760 Total budgeted costs $196,876 $87,000 The company has budgeted for 5,930 hours of technician time during the coming year. It wants a $41 profit margin per hour of labour and a 100% profit on parts. It estimates the total invoice cost of parts and materials in 2022 will be $696,000. (a) (b) Calculate the material loading percentage. (Round answer to 2 decimal places, e.g. 15.25%.) Material loading Q Search %

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 6E: Varney Corporation, a manufacturer of electronics and communications systems, allocates Computing...

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Firenza Company manufactures specialty tools to customer order. Budgeted overhead for the coming year is: Previously, Sanjay Bhatt, Firenza Companys controller, had applied overhead on the basis of machine hours. Expected machine hours for the coming year are 50,000. Sanjay has been reading about activity-based costing, and he wonders whether or not it might offer some advantages to his company. He decided that appropriate drivers for overhead activities are purchase orders for purchasing, number of setups for setup cost, engineering hours for engineering cost, and machine hours for other. Budgeted amounts for these drivers are 5,000 purchase orders, 500 setups, and 2,500 engineering hours. Sanjay has been asked to prepare bids for two jobs with the following information: The typical bid price includes a 40 percent markup over full manufacturing cost. Required: 1. Calculate a plantwide rate for Firenza Company based on machine hours. What is the bid price of each job using this rate? 2. Calculate activity rates for the four overhead activities. What is the bid price of each job using these rates? 3. Which bids are more accurate? Why?
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