Presented below are data relating to labor for verde appliance repair shop.

repair-technicians' wages $110,000
fringe benefits 40,000
overhead 50,000

the desired profit margin per hour is $20. the material loading charge is 60% of the invoice cost. verde estimates that 5,000 labor hours will be worked next year. if verde repairs a dishwasher that takes 1.5 hours to repair and uses parts of $70, computes the bill for the job.

total cost $

Total cost is $200,000 and the bill for the job is $407.5

Explanation:

The total cost would be:

Total cost = Wages + Benefits + Overhead

= $110,000 + $40,000 + $50,000

= $200,000

Cost per hour = Total Cost / Labor hours

= $200,000 / 5,000

= $40 per hour

Profit per hour required is $20 per hour

Total rate per hour = Cost per hour + Profit per hour

= $40 + $20

= $60 per hour

The bill for the job would be:

Let the bill be X

Total bill = Used part cost + Repair cost per hour (1.5 hr is 93) + Loading charges

X = $70 + 93 + .6X

0.4 X = $163

X = $163 / 0.4

X = $407.5

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