computation of material loading charge Material Material Loading Total Invoice Cost. Loading Charges = Parts...

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Accounting

computation of material loading charge
Material
Material
Loading
Total Invoice Cost.
Loading
Charges = Parts and Materials = Percentage
Overhead costs
Parts manager's salary
and benefits
Office employee's salary
and benefits
$25,400
Other overhead
Total
13,600
39.000
16.000
$55,000
=
$100,000
100.000
100,000
Profit margin
Material loading percentage
(($25,400 + $13,600) = $100,000) + ($16,000 = $100,000) + 25% = 80%]
[(Parts mgr.'s sal. & bene. + Off. emp. sal. & bene.) = Tot. cost parts & mat.) + (Other OH - Tot cost
parts & mat.) + Profit margin = Mat. loading %]
39%
16%
55%
25%
80%

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