Question : 66.              The first step for time-and-material pricing to calculate the a.charge : 1311803

 

 

66.              The first step for time-and-material pricing is to calculate the

a.charge for obtaining materials.

b.charge for holding materials.

c.labor charge per hour.

d.charges for a particular job.

 

 

67.              The labor charge per hour in time-and-material pricing includes all of the following except

a.an allowance for a desired profit.

b.charges for labor loading.

c.selling and administrative costs.

d.overhead costs.

 

 

68.              The last step in determining the material loading charge percentage is to

a.estimate annual costs for purchasing, receiving, and storing materials.

b.estimate the total cost of parts and materials.

c.divide material charges by the total estimated costs of parts and materials.

d.add a desired profit margin on the materials themselves.

 

 

69.              In time-and-material pricing, the charge for a particular job is the sum of the labor charge and the

a.materials charge.

b.material loading charge.

c.materials charge + desired profit.

d.materials charge + the material loading charge.

 

 

 

70.              The following data is available for Wheels ‘N Spokes Repair Shop for 2013:

Repair technicians’ wages$360,000

Fringe benefits80,000

Overhead    60,000

Total$500,000

The desired profit margin is $40 per labor hour. The material loading charge is 40% of invoice cost. It is estimated that 5,000 labor hours will be worked in 2013.

Wheels ‘N Spokes’ labor charge in 2013 would be

a.$100.

b.$112.

c.$128.

d.$140.

 

 

71.              The following data is available for Wheels ‘N Spokes Repair Shop for 2013:

Repair technicians’ wages$360,000

Fringe benefits80,000

Overhead    60,000

Total$500,000

The desired profit margin is $40 per labor hour. The material loading charge is 40% of invoice cost. It is estimated that 5,000 labor hours will be worked in 2013.

In January 2013, Wheels ‘N Spokes repairs a bicycle that uses parts of $180. Its material loading charge on this repair would be

a.$72.

b.$108.

c.$180.

d.$252.

 

 

72.              The following data is available for Wheels ‘N Spokes Repair Shop for 2013:

Repair technicians’ wages$360,000

Fringe benefits80,000

Overhead    60,000

Total$500,000

The desired profit margin is $40 per labor hour. The material loading charge is 40% of invoice cost. It is estimated that 5,000 labor hours will be worked in 2013.

In March 2013, Wheels ‘N Spokes repairs a bicycle that takes two hours to repair and uses parts of $240. The bill for this repair would be

a.$520.

b.$560.

c.$592.

d.$616.

 

 

73.              Which of the following organizations would most likely not use time-and-material pricing?

a.Automobile repair company

b.Engineering firm

c.Custom furniture manufacturer

d.Public accounting firm

 

 

74.              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

The labor rate per hour is

a.$42.50.

b.$26.00.

c.$41.50.

d.$46.00.

 

 

75.              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

The material loading charge is

a.15%.

b.25%.

c.40%.

d.55%.