Question

The following data is available for Mike's Phone Repair Shop for 2019: Repair technician's wages $360,000 Fringe benefits 80,000 Overhead 60,000 Total: 500,000 The desired profit margin is $25 per labor hour. The material loading charge is 25% of invoice cost. It is estimated that 5000 labor hours will be worked in 2019. In January 2019, Mike repairs a cellphone that uses parts of $200. Its material loading charge on this repair would be Select one: a. $20 b. $72 c. $50 d. $200

Answer 1

c. $50

Step-by-step explanation:

Material or part cost = $200

Material loading charge = 25% of invoice cost

Material loading charge = 25% × $200 = $50

Therefore, the material loading charge on this repair would be $50.