HH Auto Repair reports the following information for the coming year Labor rate, including fringe benetits Annual labor hours Annual materials (parts) purchases Annual overhead costai Materials purchasing, handling, and storage Other overhead (depreciation, insurance, taxes, rent) Target profit margin (on both labor and materials) 53 per labor hour 11,700 hours $2,170,000 $ 347,200 191,900 30 1 1. Compute the price (rate) per hour of direct labor. (Round your answer to 2 decimal places) 2. Compute the materials markup (In %). 3. What price should the company quote for a job requiring three labor hours and $750 in parts? (Round your answer to 2 decinal places.) 1. Total labor rate per hour 2. Matorials markup 3. Total price quole
HH Auto Repair reports the following information for the coming year Labor rate, including fringe benetits Annual labor hours Annual materials (parts) purchases Annual overhead costai Materials purchasing, handling, and storage Other overhead (depreciation, insurance, taxes, rent) Target profit margin (on both labor and materials) 53 per labor hour 11,700 hours $2,170,000 $ 347,200 191,900 30 1 1. Compute the price (rate) per hour of direct labor. (Round your answer to 2 decimal places) 2. Compute the materials markup (In %). 3. What price should the company quote for a job requiring three labor hours and $750 in parts? (Round your answer to 2 decinal places.) 1. Total labor rate per hour 2. Matorials markup 3. Total price quole
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 7EA: A company estimates its manufacturing overhead will be $750,000 for the next year. What is the...
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![HH Auto Repair reports the following information for the coming year.
Labor rate, including fringe benefits
Annual labor hours
Annual materials (parts) purchases
Annual overhead costs:
53 per labor hour
11,700 bours
$2,170,000
Materials purchasing, handling, and storage
other overhead (depreciation, insurance, taxes, rent)
Target profit margin (on both labor and materials)
$ 347, 200
$ 191,900
30 1
1. Compute the price (rate) per hour of direct labor. (Round your answer to 2 decimal places)
2. Compute the materials markup (in %).
3. What price should the company quote for a job requiring three labor hours and $750 in parts? (Round your answer to 2 decimal
places.)
1. Total labor rate per hour
2. Materials markup
3. Total price quote](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F62249432-c9ab-4085-bf41-825cb4d65021%2Fefdd3885-7d1b-476f-85f3-4b90898c6c9a%2Fo322d4n_processed.jpeg&w=3840&q=75)
Transcribed Image Text:HH Auto Repair reports the following information for the coming year.
Labor rate, including fringe benefits
Annual labor hours
Annual materials (parts) purchases
Annual overhead costs:
53 per labor hour
11,700 bours
$2,170,000
Materials purchasing, handling, and storage
other overhead (depreciation, insurance, taxes, rent)
Target profit margin (on both labor and materials)
$ 347, 200
$ 191,900
30 1
1. Compute the price (rate) per hour of direct labor. (Round your answer to 2 decimal places)
2. Compute the materials markup (in %).
3. What price should the company quote for a job requiring three labor hours and $750 in parts? (Round your answer to 2 decimal
places.)
1. Total labor rate per hour
2. Materials markup
3. Total price quote
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