Calculate the material loading charge percentage

Assignment Help Accounting Basics
Reference no: EM132534555

Question - Lemond Bike Repair Shop has budgeted the following time and material for 2020:

 

Time Charges

Material Charges

Shop employees' wages and benefits

$36,000

-

Parts manager's salary and benefits

-

$20,000

Office employee's salary and benefits

15,000

10,000

Overhead (supplies, amortization, advertising, utilities)

19,000

15,000

Total budgeted costs

$70,000

$45,000

Lemond budgets 2,500 hours of repair time in 2020. It will bill a profit of $5 per labour 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, 2020, Lemond is asked to submit a price estimate to fix an Alpine mountain bike. Lemond estimates that this repair will consume four hours of labour and $200 in parts and materials.

Instructions -

a. Calculate the labour rate for Lemond Bike Repair Shop for 2020.

b. Calculate the material loading charge percentage for Lemond Bike Repair Shop for 2020. (Round to three decimal places.)

c. Prepare a time-and-material price quotation for the repair of the Alpine mountain bike.

Reference no: EM132534555

Questions Cloud

What is their adjusted gross income : What is their (a) adjusted gross income; (b) their total itemized deductions; (c) the amount of their exemptions; and (d) their taxable income
What are characteristics of consumer habits : Describe the framework of creating automatic behavior. What are the key factors in this process? Explain. what are characteristics of consumer habits?
What gain should Cline include in gross income : Cline sold land with a basis of $60,000 to Johnson for $100,000. What gain should Cline include in gross income for the tax year following the year of sale
Show the cost of goods sold and ending inventory : REQUIRED - Schedule to show the cost of goods sold and ending inventory using the first in first out (FIFO) method of costing
Calculate the material loading charge percentage : On January 5, 2020, Lemond is asked to submit a price estimate to fix an Alpine mountain bike. Calculate the material loading charge percentage
Artificial intelligence : What makes this such a significant field to be in is its applicability to many other fields and nearly every industry. One of these is Artificial Intelligence.
Discuss the mean for iron cage : Weber saw rationalisation as an "iron cage" that increasingly dominated all social life. Discuss what he means by this, and how rationalisation shapes.
Do advancements in technology pose any indirect threats : Do advancements in technology pose any direct and/or indirect threats to the global environment? Choose one advancement and provide two examples
Prepare the journal entries to record adjusting entries : The equipment is deliverable on March 31. In order to hedge the commitment to pay DKK1.2 million, Prepare the journal entries to record Adjusting entries

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd