Jaycee Auto Repair has the following budgeted costs for the next year: Time Charges Material Charges Shop employees' wages and benefits $120,000 $ - Parts manager's salary and benefits - 45,000 Office employee's salary and benefits 30,000 15,000 Other overhead 15,000 40,000 Invoice cost of parts and materials - 400,000 Total budgeted costs $165,000 $500,000 The materials loading charge is 65% and the labor charge per hour is $47. Jaycee estimates that the repairs to a Cadillac Escalade damaged in an accident will take 45 hours of labor and $3,500 in parts and materials. The total cost of the repairs is

Question

Jonathan Buck

Business

11 June, 13:18

Jaycee Auto Repair has the following budgeted costs for the next year: Time Charges Material Charges Shop employees' wages and benefits $120,000 $ - Parts manager's salary and benefits - 45,000 Office employee's salary and benefits 30,000 15,000 Other overhead 15,000 40,000 Invoice cost of parts and materials - 400,000 Total budgeted costs $165,000 $500,000 The materials loading charge is 65% and the labor charge per hour is $47. Jaycee estimates that the repairs to a Cadillac Escalade damaged in an accident will take 45 hours of labor and $3,500 in parts and materials. The total cost of the repairs is

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Alexa Yoder · Answer 1

Total cost of repairs:

Material = 3,500

Material loading charge = 3,500 * 65% = 2,275

Labor (45hrs * $47per hr) = 2,115

Thus, total cost = (3500 + 2275 + 2115) = $7,890