SOLUTION
Chapter 8 Waterways Continuing Problem
WCP8
(a)
Total Cost /
Total
Hours =
Per Hour
Charge
Labor wages
$240,000
5,750
$41.74
Clerical and accountant wages
60,000
5,750
10.43
(b)
Material
Loading
Charges
Total
Invoice
Cost for
Materials
Supervisor’s salary
$ 60,000
Clerical and accountant wages
4,000
Other overhead
$125,000
$640,000
Profit margin
(c)
WATERWAYS CORPORATION
Time and Materials Price Quote for Parkway
Labor charges
(480 hours @ $75.55)
$ 36,264
Material charges
Total price for parkway
Other overhead
5,750
Total hourly cost
5,750
$61.55
Profit margin