John’s Custom Electronics (JCE) sells and installs complete security, computer, audio, and video systems for homes. On newly constructed homes it…

John’s Custom Electronics (JCE) sells and installs complete security, computer, audio, and video systems for homes. On newly constructed homes it provides bids using time-and-material pricing. The following budgeted cost data are available.Technicians’ wages and benefits Parts manager’s salary and benefits Office employee’s salary and benefits Other overheadTotal budgeted costsTime Charges$150,000 —28,000 15,000$193,000Material Loading Charges— $34,00012,000 42,000$88,000The company has budgeted for 6,000 hours of technician time during the coming year. It desires a $38 profit margin per hour of labor and a 100% profit on parts. It estimates the total invoice cost of parts and materials in 2011 will be $700,000.Instructions(a) Compute the rate charged per hour of labor. (Round to two decimal places.) (b) Compute the material loading percentage. (Round to two decimal places.) (c)JCE has just received a request for a bid from Sublette Builders on a $1,200,000 newhome. The company estimates that it would require 80 hours of labor and $40,000 of parts. Compute the total estimated bill.

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