Question : 76.              Carlos Consulting Inc. provides financial consulting and has collected : 1311804

 

 

76.              Carlos Consulting Inc. provides financial consulting and has collected the following data for the next year’s budgeted activity for a lead consultant.

Consultants’ wages$90,000

Fringe benefits$22,500

Related overhead$17,500

Supply clerk’s wages$18,000

Fringe benefits$4,000

Related overhead$20,000

Profit margin per hour$20

Profit margin on materials15%

Total estimated consulting hours5,000

Total estimated supply costs$168,000

A consulting job takes 20 hours of consulting time and $180 of supplies. The client’s bill would be

a.$1,172.

b.$772.

c.$952.

d.$1,100.

 

 

77.              Lonely Guy Repair Service recently performed repair services for a customer that totaled $400. Somehow the bill was lost and the company accountant was trying to recreate the bill from memory. This is what was remembered:

Total bill$600

Labor profit margin$10

Materials profit margin20%

Total labor charges$390

Cost of materials used$120

Total hourly cost$22.50

What was the material loading charge?

a.37.5%

b.43.8%

c.61.3%

d.75%

 

 

78.              Lonely Guy Repair Service recently performed repair services for a customer that totaled $400. Somehow the bill was lost and the company accountant was trying to recreate the bill from memory. This is what was remembered:

Total bill$600

Labor profit margin$10

Materials profit margin20%

Total labor charges$390

Cost of materials used$120

Total hourly cost$22.50

How many hours were billed on the job?

a.19.5

b.18.5

c.17.3

d.12.0

 

 

79.              Lawrence Legal Services recently billed a customer $690. Labor hours were 6 and the cost of the materials used was $150. If the company’s hourly labor rate was $75, what material loading charge was used?

a.30%

b.50%

c.60%

d.100%

 

 

80.              Dudly Drafting Services uses a 45% material loading charge and a labor rate of $20 per hour. How much will be charged on a job that requires 3.5 hours of work and $40 of materials?

a.$128

b.$110

c.$88

d.$133

 

 

81.              The time component under time-and-material pricing includes a

a.loading charge.

b.charge for receiving, handling, and storing materials.

c.portion of the materials clerk’s wages.

d.profit margin.

 

 

82.              Using time-and-material pricing involves how many steps?

a.4

b.3

c.2

d.1

 

 

83.              The last step in calculating the hourly rate to be charged in time-and-material pricing is to

a.estimate the total labor costs plus fringe benefits.

b.estimate the total labor hours.

c.add a profit margin.

d.add a charge for overhead costs.

 

 

84.              Jaycee Auto Repair has the following budgeted costs for the next year:

Time ChargesMaterial Charges

Shop employees’ wages and benefits$120,000$-

Parts manager’s salary and benefits-45,000

Office employee’s salary and benefits30,00015,000

Other overhead15,000 40,000

Invoice cost of parts and materials   –     400,000

Total budgeted costs$165,000$500,000

The labor rate to be used next year assuming 7,500 hours of repair time and a profit margin of $25 per labor hour is

a.$22.

b.$41.

c.$43.

d.$47.

 

 

85.              Jaycee Auto Repair has the following budgeted costs for the next year:

Time ChargesMaterial Charges

Shop employees’ wages and benefits$120,000$-

Parts manager’s salary and benefits-45,000

Office employee’s salary and benefits30,00015,000

Other overhead15,000 40,000

Invoice cost of parts and materials   –     400,000

Total budgeted costs$165,000$500,000

The material loading charge to be used next year assuming a 40% markup on material cost is

a.20%.

b.40%.

c.65%.

d.80%.