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%.
