Answer:
1. 40%
2. $1140
Explanation:
1. The material loading charge usually covers the costs of purchasing, receiving, handling, and storing materials, plus any desired profit margin on the materials themselves and expressed as a percentage of the total estimated costs of parts and materials for the year.
Step 1
Compute the supply cost:
Supply cost = Supply clerk’s wages + Fringe benefits of supply + Related overhead of supply
Supply cost = $18,000 + $4,000 + $20,000 = $42,000
Step 2
Calculate the material loading charge:
material loading charge = ((supply costs/Total estimated material cost)×100) + Profit margin on materials
Material loading charge = (($42,000/$168,000)×100) + 15%
Material loading charge = 25% + 15% = 40%
The material loading charge is 40%
2. Calculating the Client's bill
Step 1
Calculate the estimated consultant cost (ECC):
ECC = Consultants’ wages + Fringe benefits for consultant + Related overhead for consultant
ECC = $90,000 + $22,500 + $17,500 = $130,000
estimated consultant cost = $130,000
Step 2
Calculate the total price per consulting hours (PCH)
Cost per consulting hour = estimated consultant cost /Total estimated consulting hours
Cost per consulting hour = $130,000/5,000 = $26
Price per consulting hours = Cost per consulting hour + Profit margin per hour
Price per consulting hours = $26 + $20 = $48
total price per consulting hours = Price per consulting hours × 20
total price per consulting hours = $48 × 20 = $960
Client's bill = total price per consulting hours + $180 of materials
Client's bill = $960 + $180 = $1140
The client's bill is $1140
