Assume the following data for Lake Holiday Marina, a boat and motor repair shop.
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LAKE HOLIDAY MARINA Budgeted Costs for the Year 2011 |
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Time Charges |
Material Loading Charges |
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Mechanics wages and benefits |
$103,500 |
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Parts manager’s salary and benefits |
|
$11,500 |
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Office employee’s salary and benefits |
20,700 |
2,300 |
|
Other Overhead(supplies, depreciation, property taxes, advertising, utilities) |
26,800 |
14,400 |
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Total budgeted costs |
$151,000 |
$28,200 |
Using time and material pricing involves three steps:
1) Calculate the per hour labor charge,
2) Calculate the charge for obtaining and holding materials, and
3) Calculate the charges for a particular job.