KarlĂ˘â‚¬â„˘s Klassic Kars restores classic automobiles to showroom status. Budgeted data for the current year are as follows:
Use time-and-material pricing to determine bill.
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The company anticipated that the restorers would work a total of 12,000 hours this year and expected that parts and materials would cost $1,260,000.
In late January, the company experienced a fire in its facilities that destroyed most of the accounting records. The accountant remembers that the hourly labour rate was $70.00 and that the material loading charge was 83.25%.
a. Determine the profit margin per hour on labour.
b. Determine the profit margin on materials.
c. Determine the total price of labour and materials on a job that was completed after the fire that required 150 hours of labour and $60,000 in parts and materials.