Blue Spruce Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2022 is available for BlueSpruce.Technicians' wages and benefitsParts manager's salary and benefitsOffice employee's salary and benefitsOther overhead(a)Total budgeted costsCompute the rate charged per hour of labor.TimeCharges$202,800Labor rate $39,0007,800$249,600The company desires a $39 profit margin per hour of labor and a 28% profit margin on parts. It has budgeted for 7,800 hours ofrepair time in the coming year, and estimates that the total invoice cost of parts and materials in 2022 will be $416,000.MaterialLoadingChargesper hour$39,30014,78029,120$83,200

INTRODUCTION: Labour rates are used to calculate both the price of employee time invoiced to…

Blue Spruce Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2022 is available for Blue Spruce. Technicians' wages and benefits Parts manager's salary and benefits Office employee's salary and benefits Other overhead Total budgeted costs (a) Compute the rate charged per hour of labor. Labor rate Time Charges $202,800 $ 39,000 7,800 The company desires a $39 profit margin per hour labor and a 28% profit margin on parts. It has budgeted for 7,800 hours of repair time in the coming year, and estimates that the total invoice cost of parts and materials in 2022 will be $416,000. $249,600 Material Loading Charges per hour $39,300 14,780 29,120 $83,200

Blue Spruce Welding rebuilds spot welders for manufacturers. The following budgeted cost data for 2022 is available for Blue Spruce. Technicians' wages and benefits Parts manager's salary and benefits Office employee's salary and benefits Other overhead Total budgeted costs (a) Compute the rate charged per hour of labor. Labor rate Time Charges $202,800 $ 39,000 7,800 The company desires a $39 profit margin per hour labor and a 28% profit margin on parts. It has budgeted for 7,800 hours of repair time in the coming year, and estimates that the total invoice cost of parts and materials in 2022 will be $416,000. $249,600 Material Loading Charges per hour $39,300 14,780 29,120 $83,200

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 7EA: A company estimates its manufacturing overhead will be $750,000 for the next year. What is the...

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