Use the following information for questions
The following data are available for Wheels 'N Spokes Repair Shop for 2016: $$\begin{array} { l r }
\text { Repair technician's wages } & \$ 150,000 \
\text { Fringe benefits } & 50,000 \
\text { Overhead } & { 80,000 } \
\text { Total } & \$ 280,000
\end{array}$$ The desired profit margin is $15 per labour hour.The material loading charge is 35% of invoice cost.It is estimated that 4,000 labour hours will be worked in 2016.
-In January 2016, Wheels 'N Spokes repairs a bicycle that uses parts of $200.Its material loading charge on this repair would be
A)$35.
B)$70.
C)$235.
D)$270.

Question

Use the following information for questions 
The following data are available for Wheels 'N Spokes Repair Shop for 2016: $$\begin{array} { l r } 
\text { Repair technician's wages } & \$ 150,000 \
\text { Fringe benefits } & 50,000 \
\text { Overhead } & { 80,000 } \
\text { Total } & \$ 280,000
\end{array}$$ The desired profit margin is $15 per labour hour.The material loading charge is 35% of invoice cost.It is estimated that 4,000 labour hours will be worked in 2016.
-In January 2016, Wheels 'N Spokes repairs a bicycle that uses parts of $200.Its material loading charge on this repair would be
A)$35.
B)$70.
C)$235.
D)$270.

Quizplus · Accepted Answer

The material loading charge is 35% of the invoice cost. For parts costing $200, the loading charge is 0.35 * $200 = $70.

Use the Following Information for Questions the Following Data

Use the Following Information for Questions
the Following Data