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Wassons Classic Cars restores classic automobiles to showroom status. Budgeted data for the current year...

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Accounting

Wassons Classic Cars restores classic automobiles to showroom status. Budgeted data for the current year are as follows.

Time Charges Material Loading Charges
Restorers' wages and fringe benefits $231,000
Purchasing agent's salary and fringe benefits $81,520
Administrative salaries and fringe benefits 52,500 20,000
Other overhead costs 10,500 76,140
Total budgeted costs $294,000 $177,660

The company anticipated that the restorers would work a total of 10,500 hours this year. Expected parts and materials were $1,269,000. In late January, the company experienced a fire in its facilities that destroyed most of the accounting records. The accountant remembers that the hourly labor rate was $71 and that the material loading charge was 83%.

(a)

Determine the profit margin per hour on labor. (Round intermediate calculations to 2 decimal places, e.g. 10.25 and final answer to 0 decimal places, e.g. 10.)

Profit margin on labor $Type your answer here per hour

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