Question

Sutton’s Electronic Repair Shop has budgeted the following time and material for 2017. SUTTON’S ELECTRONIC REPAIR SHOP Budgeted Costs for the Year 2017 Time Charges Material Loading Charges Shop employees’ wages and benefits $101,379 ― Parts manager’s salary and benefits ― $25,400 Office employee’s salary and benefits 19,176 16,600 Overhead (supplies, depreciation, advertising, utilities) 24,957 21,000 Total budgeted costs $145,512 $63,000 Sutton’s budgets 4,700 hours of repair time in 2017 and will bill a profit of $9 per labor hour along with a 20% profit markup on the invoice cost of parts. The estimated invoice cost for parts to be used is $105,000. On January 5, 2017, 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 $220 in parts.

Compute the labor rate for Sutton’s Electronic Repair Shop for the year 2017. (Round answer to 2 decimal places, e.g. 10.50.) Labour rate $ per hour

Compute the material loading charge percentage for Sutton’s Electronic Repair Shop for the year 2017. Material loading percentage %

Calculate the time-and-material price quotation for fixing the flat-screen TV. (Round answer to 2 decimal places, e.g. 10.50.) Total price of labor and material $

Answer 1