Question

Oriole Company provides financial consulting and has collected the following data for the next year’s budgeted activity for a lead consultant.

Consultants’ wages	$95,000
Fringe benefits	$12,500
Related overhead	$17,500
Supply clerk’s wages	$17,000
Fringe benefits	$4,500
Related overhead	$20,000
Profit margin per hour	$20
Profit margin on materials	15%
Total estimated consulting hours	5,000
Total estimated material costs	$166,000

A consulting job takes 20 hours of consulting time and $180 of materials. The client’s bill would be

Group of answer choices

$1,152

$1,080

$1,125

$972

2)

Sunland Company recently performed repair services for a customer that totaled $680. Somehow the bill was lost and the company accountant was trying to recreate the bill from memory. This is what was remembered:

Total bill	$680
Labor profit margin	10
Materials profit margin	20%
Total labor charges	$470
Cost of materials used	$120
Total hourly cost	$22.5

What was the material loading % used?

Group of answer choices

75%

40%

90%

20%

Answer 1

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