Presented below are data for Harmon Electrical Repair Shop for next year. The desired profit margin per labor hour is $10. The material loading charge is 40% of invoice cost. Harmon estimates that 8,000 labor hours will be worked next year. Compute the rate charged per hour of labor.
|
|
Total Cost |
|
Repair technician’s wages |
$130,000 |
|
Fringe benefits |
30,000 |
|
Overhead |
20,000 |
|
|
$180,000 |
If Harmon repairs a TV that takes 4 hours to repair and uses parts of $50, compute the bill for this job.