Compute the labor rate for joses electronic repair shop

Assignment Help Cost Accounting
Reference no: EM13888797

Jose's Electronic Repair Shop has budgeted the following time and material for 2014.

Jose's Electronic Repair Shop Budgeted Costs for the Year 2014

 Material

Time Charges

Loading Charges

Shop employees' wages and benefits Parts manager's salary and benefits

$108,000

$25,400

Office employee's salary and benefits

23,500

13,600

Overhead (supplies, depreciation, advertising, utilities)

26,000

16,000

Total budgeted costs

$157,500

$55,000

Jose's budgets 5,000 hours of repair time in 2014 and will bill a profit of $5 per labor hour along with a 30% profit markup on the invoice cost of parts. The estimated invoice cost for parts to be used is $100,000.

On January 5, 2014, Jose's is asked to submit a price estimate to fix a 72-inch flat- screen TV. Jose's estimates that this job will consume 5 hours of labor and $200 in parts.

Instructions

(a) Compute the labor rate for Jose's Electronic Repair Shop for the year 2014.

(b) Compute the material loading charge percentage for Jose's Electronic Repair Shop for the year 2014.

(c) Prepare a time-and-material price quotation for fixing the flat-screen TV.

Reference no: EM13888797

Questions Cloud

Fed hopes to impact short-run inflation and output byalter : The Fed hopes to impact short-run inflation and output byaltering
Security engineering and infrastructure security engineering : 1. Explain the important differences between application security engineering and infrastructure security engineering. 2. For the MHC-PMS, suggest an example of an asset, exposure, vulnerability, attack, threat, and control.
Calculate minimum transfer price that chip division accept : Calculate the minimum transfer price that the Chip Division should accept. Discuss whether it is in the Chip Division's best interest to accept the offer.
Develop the information and identify the possible decisions : A decision-maker is using the maximax, maximin, and LaPlace criteria for the problem below. Develop the information and identify the possible decisions for each method.
Compute the labor rate for joses electronic repair shop : Compute the labor rate for Jose's Electronic Repair Shop for the year 2014. Compute the material loading charge percentage for Jose's Electronic Repair Shop for the year 2014.
How should a business use working capital analysis? : How should a business use working capital analysis?
Poor operational procedures : She asserts that the problems must be due to poor operational procedures. A newspaper approaches you for your opinion. Discuss how you should handle such an interview.
The preface to the picture of dorian gray : In the Preface to The Picture of Dorian Gray, Wilde asserts "[i]t is the spectator, and not life, that art really mirrors."  Evaluate this statement in relation to Wilde's play
Compare and contrast the internal rate of return : Compare and contrast the Internal Rate of Return

Reviews

Write a Review

Cost Accounting Questions & Answers

  What is the effect of dixons proposed change on income

Who are the stakeholders in this situation and what is the effect of Dixon"s proposed change on income before taxes in the year of change?

  Compute the unit cost for the handles

Compute the unit cost for the handles produced by the pattern department assuming that process costing is totally appropriate. Round unit cost to two decimal places.

  Classify the following items as investment by owner

Classify the following items as investment by owner (I), owner's drawings (D), revenues (R), or expenses (E).Then indicate whether each item increases or decreases owner's equity.

  Proportion to the time devoted to the business

The ratio of their initial capital investments, which they have agreed will be $32,000 for Baker and $48,000 for Farney -  proportion to the time devoted to the business;

  On 1st january abc company issued 1000000 5 year 12 percent

on 1st january abc company issued 1000000 5 year 12 percent bonds for 1037690. if the bonds pay interest on june 30 and

  Compute the unit product cost under cost absorption costing

Was the CPA correct in suggesting that the company really earned a "profit" for the month?

  Prepare the necessary adjusting journal entries for items

Prepare the necessary adjusting journal entries for items a through h. Assume that adjusting entries are made only at year-end.

  Compute total manufacturing costs for the month

Enter each cost item on your answer sheet, placing an "X" under the appropriate headings. Compute total manufacturing costs for the month.

  Revenues and expenses defined under accrual accounting

Explain the difference between the accrual basis of accounting and the cash basis of accounting. What are the major reasons for accrual accounting? How are revenues and expenses defined under accrual accounting?

  What are the u.s. tax consequences of hans u.s. activities

What are the U.S. tax consequences of Hans U.S. activities and compute Cholati s branch profi ts tax, and determine its branch interest withholding tax obligations. Assume that Cholati does not reside in a treaty country.

  Mystical corporation found the subsequent errors in their

mystical corporation found the subsequent errors in their year-end financial statements as of dec. 2012

  Evaluate the expected contribution margin ratio

Evaluate the expected contribution margin ratio and round to the nearest whole percent, find the break-even sales in units and prepare a cost-volume-profit chart on your own paper. What is break-even sales

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