Question

Exercise 22-9 Rey Custom Electronics (RCE) 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. Time Charges Material Loading Charges Technicians' wages and benefits $ 115,819 - Parts manager's salary and benefits - $ 33,000 Office employee's salary and benefits 21,823 19,430 Other overhead 13,961 44,565 Total budgeted costs $ 151,603 $ 96,995 The company has budgeted for 5,040 hours of technician time during the coming year. It desires a $ 38.42 profit margin per hour of labor and an 80% profit on parts. It estimates the total invoice cost of parts and materials in 2017 will be $ 749,000 . Compute the rate charged per hour of labor. (Round answer to 2 decimal places, e.g. 10.50.) Labor rate $ per hour LINK TO TEXT Compute the material loading percentage. (Round answer to 2 decimal places, e.g. 10.50.) Material loading percentage % LINK TO TEXT RCE has just received a request for a bid from Buil Builders on a $ 1,190,000 new home. The company estimates that it would require 83 hours of labor and $ 36,300 of parts. Compute the total estimated bill. (Round answer to 2 decimal places, e.g. 10.50.) Total estimated bill $ next question: Exercise 22-2 Eckert Company is involved in producing and selling high-end golf equipment. The company has recently been involved in developing various types of laser guns to measure yardages on the golf course. One small laser gun, called LittleLaser, appears to have a very large potential market. Because of competition, Eckert does not believe that it can charge more than $97 for LittleLaser. At this price, Eckert believes it can sell 113,000 of these laser guns. Eckert will require an investment of $7,704,545 to manufacture, and the company wants an ROI of 22%. Determine the target cost for one LittleLaser. (Round answer to 0 decimal places, e.g. 10.) Target cost $ -- next question: Exercise 22-1 Incorrect answer. Your answer is incorrect. Try again. Mesa Cheese Company has developed a new cheese slicer called Slim Slicer. The company plans to sell this slicer through its catalog, which it issues monthly. Given market research, Mesa believes that it can charge $23 for the Slim Slicer. Prototypes of the Slim Slicer, however, are costing $29. By using cheaper materials and gaining efficiencies in mass production, Mesa believes it can reduce Slim Slicer's cost substantially. Mesa wishes to earn a return of 33% of the selling price. (a) Compute the target cost for the Slim Slicer. (Round answer to 2 decimal places, e.g. 10.50.) Target cost $Entry field with incorrect answer now contains modified data

Answer 1

Ans 1. Labour rate per hour

	total cost(A)	Total  hours(B)	per hour(A/B)
Technicians Wages & Benefits	$115,819	5,040	$22.98
Office employees salaries & benefits	21,823	5,040	$4.33
Other overhead	13,961	5,040	$2.77
Total	$151,603		$30.08
Add: Profit margin			$38.42
Labor Rate per hour			$68.50
Ans 2 Material loading %
	Material Loading charges(M)	Total Invoice(I)	Material Loading(in % )(M/I*100)
Parts manager Salary & Benfits	$33,000	$749,000	4.41
Office employees salaries & benefits	$19,430	$749,000	2.59
Other overhead	$44,565	$749,000	5.95
Total	$96,995		12.95
Profit margin			80
Material Loading %			92.95
Ans 3 Estimated Bill
Labor( 83*68.50)	$5,685.50
Material	$36,300
Material loading (36,300*92.95%)	33740.85
Total estimated Bill	$74,726.35