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Jose Electronic 5000

Price: $2.50


Jose’s Electronic Repair Shop has budgeted the following time and material for 2014.
Jose’s Electronic Repair Shop
Budgeted Costs for the Year 2014
Time Charges Material Loading Charges
Shop employees' wages and benefits   108,000  - 
Parts manager's salary and benefits   -   25,400
Office employee's salary and benefits   23,500  13,600
Overhead (supplies, depreciation, advertising, utilities)   26,000  16,000
Total budgeted costs   157,500  55,000

Jose’s budgets 5,000 hours of repair time in 2014 and will bill a profit of $5 per labor hour along with a 30% profit markup on the invoice cost of parts. The estimated invoice costJose’s budgets 5,000 hours of repair time in 2014 and will bill a profit of $5 per labor hour for parts to be used is $100,000.

On January 5, 2014, Jose’s is asked to submit a price estimate to fix a 72-inch flatscreen
TV. Jose’s estimates that this job will consume 5 hours of labor and $200 in parts.

Instructions
(a) Compute the labor rate for Jose’s Electronic Repair Shop for the year 2014.
(b) Compute the material loading charge percentage for Jose’s Electronic Repair Shop for
the year 2014.
(c) Prepare a time-and-material price quotation for fixing the flat-screen TV.

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