Chuck's Classic Cars restores classic automobiles to showroom status. Budgeted data for the current year are:
The company anticipated that the restorers would work a total of 10,000 hours this year. Expected parts and materials were $1,200,000.
In late January, the company experienced a fire in its facilities that destroyed most of the accounting records. The accountant remembers that the hourly labor rate was $60 and that the material loading charge was 83.80%.
Instructions
(a) Determine the profit margin per hour on labor.
(b) Determine the profit margin on materials.
(c) Determine the total price of labor and materials on a job that was completed after the fire that required 150 hours of labor and $60,000 in parts and materials.

Question

Chuck's Classic Cars restores classic automobiles to showroom status. Budgeted data for the current year are:  
The company anticipated that the restorers would work a total of 10,000 hours this year. Expected parts and materials were $1,200,000.
In late January, the company experienced a fire in its facilities that destroyed most of the accounting records. The accountant remembers that the hourly labor rate was $60 and that the material loading charge was 83.80%.
Instructions
(a) Determine the profit margin per hour on labor.
(b) Determine the profit margin on materials.
(c) Determine the total price of labor and materials on a job that was completed after the fire that required 150 hours of labor and $60,000 in parts and materials.

Quizplus · Accepted Answer

The Answer of Chuck's Classic Cars restores classic automobiles to showroom status. Budgeted data for the current year are:  
The company anticipated that the restorers would work a total of 10,000 hours this year. Expected parts and materials were $1,200,000.
In late January, the company experienced a fire in its facilities that destroyed most of the accounting records. The accountant remembers that the hourly labor rate was $60 and that the material loading charge was 83.80%.
Instructions
(a) Determine the profit margin per hour on labor.
(b) Determine the profit margin on materials.
(c) Determine the total price of labor and materials on a job that was completed after the fire that required 150 hours of labor and $60,000 in parts and materials.

Chuck's Classic Cars Restores Classic Automobiles to Showroom Status