Question

Please help complete all yellow boxes.

P22-3B Armstrong Bike Repair Shop has budgeted the following time and material for 2017. Armstrong Bike Repair Shop Budgeted Costs for the Year 2017 Time Material Charges Loading Charges Shop emplovees' wages and benefits Parts supervisor's salary and benefits Office employee's salary and benefits Overhead (supplies, depreciation, advertising, utilities) Total budaeted costs $36,000 15,000 19,000 $20,000 10,000 15,000 Armstrong budgets 2,500 hours of repair time in 2017 and will bill a profit of $5 per labor hour along with a 15% profit markup on the invoice cost of parts. The estimated invoice cost for parts to be used is $75,000 On January 5, 2017, Armstrong is asked to submit a price estimate to fi x a Superior Mountain bike. Armstrong estimates that this job will consume 4 hours of labor and $200 in parts. Instructions (a) Compute the laboc rate for Armstrong Bike Repair Shop for the year 2017. (b) Compute the material loading charge percentage for Armstrong Bike Repair Shop for the year 2017. (c) Prepare a time-and-material price quotation for fixing the Superior Mountain bike. (a) Computation of Labor Rate Hourly Labor Rate for Repairs: Shop employees' wages and benefits Overhead Costs: Office employee's salary and benefits Overhead Total Cost Total Hours Per Hr Chae 36,000+ 2,500 14.4 15,000 2,500 19,0002,500 70,000 2,500 2,500 6 7.6 28 5 33$ Profit Margin Rate Charged per Hour of Labor

Answer 1

Price quotation for time and material
Job: Fix big screen TV set
labor charges ( 4 Hour x $33)			$132.00
material charges
cost of parts and materials	$200.00
material loading charge ( 75 % of 200 )	$150.00		$350.00
Total Price of labor / Material			$482.00