Forrest Painting Service has budgeted the following time and material for 2016:
Forrest budgets 4,000 hours of paint time in 2016 and will charge a profit of $12 per hour, in addition to a 25% markup on the cost of paint.
On February 15, 2016, Forrest is asked to prepare a price estimate to paint a building. Forrest estimates that this job will take 12 labor hours and $500 in paint.
Instructions
1. Compute the labor rate for 2016.
2. Compute the material loading charge rate for 2016.
3. Prepare a time-and-material price estimate for painting the building.

Question

Forrest Painting Service has budgeted the following time and material for 2016:  
Forrest budgets 4,000 hours of paint time in 2016 and will charge a profit of $12 per hour, in addition to a 25% markup on the cost of paint.
On February 15, 2016, Forrest is asked to prepare a price estimate to paint a building. Forrest estimates that this job will take 12 labor hours and $500 in paint.
Instructions
1. Compute the labor rate for 2016.
2. Compute the material loading charge rate for 2016.
3. Prepare a time-and-material price estimate for painting the building.

Quizplus · Accepted Answer

The Answer of Forrest Painting Service has budgeted the following time and material for 2016:  
Forrest budgets 4,000 hours of paint time in 2016 and will charge a profit of $12 per hour, in addition to a 25% markup on the cost of paint.
On February 15, 2016, Forrest is asked to prepare a price estimate to paint a building. Forrest estimates that this job will take 12 labor hours and $500 in paint.
Instructions
1. Compute the labor rate for 2016.
2. Compute the material loading charge rate for 2016.
3. Prepare a time-and-material price estimate for painting the building.

Forrest Painting Service Has Budgeted the Following Time and Material