Problem 8-3A (Part Level Submission) Sutton\'s Electronic Repair Shop has budget
ID: 2541271 • Letter: P
Question
Problem 8-3A (Part Level Submission) Sutton's Electronic Repair Shop has budgeted the following time and material for 2017 SUTTON'S ELECTRONIC REPAIR SHOP Budgeted Costs for the Year 2017 Material Loading Charges Time Charges Shop employees' wages and benefits Parts manager's salary and benefits Office employee's salary and benefits Overhead (supplies, depreciation, advertising, utilities) Total budgeted costs $109,304 20,020 25,896 $155,220 $25,400 13,360 16,320 $55,080 Sutton's budgets 5,200 hours of repair time in 2017 and will bill a profit of $12 per labor hour along with a 24% profit markup on the invoice cost of parts. The estimated invoice cost for parts to be used is $102,000. On January 5, 2017, Sutton's is asked to submit a price estimate to fix a 72-inch flat-screen TV. Sutton's estimates that this job will consume 9 hours of labor and $290 in parts. (b) (c) Your answer is incorrect. Try again. Calculate the time-and-material price quotation for fixing the flat-screen TV. (Round answer to 2 decimal places, e.g. 10.50.) Total price of labor and material 736.25Explanation / Answer
c.
Labor charges (9 hours * $29.85) $268.65
Cost of parts $290
Material loading charge ($290 * 76%) $220.4
Total price of labor and material $779.05
* $29.85 = $155220 / 5200 hours.