Use the following information for questions
Carlos Consulting Inc. provides financial consulting and has collected the following data for the next year's budgeted activity for a lead consultant. $$\begin{array} { c l }
\text { Consultants' wages } & \$ 90,000 \
\text { Fringe benefits } & \$ 22,500 \
\text { Related overhead } & \$ 17,500 \
\text { Supply clerk's wages } & \$ 18,000 \
\text { Fringe benefits } & \$ 4,000 \
\text { Related overhead } & \$ 20,000 \
\text { Profit margin per hour } & \$ 20 \
\text { Profit margin on materials } & 15 \% \
\text { Total estimated consulting hours } & 5,000 \
\text { Total estimated material costs } & \$ 168,000
\end{array}$$
-The material loading charge is
A) 15%.
B) 25%.
C) 40%.
D) 55%.

Question

Use the following information for questions 
Carlos Consulting Inc. provides financial consulting and has collected the following data for the next year's budgeted activity for a lead consultant. $$\begin{array} { c l } 
\text { Consultants' wages } & \$ 90,000 \
\text { Fringe benefits } & \$ 22,500 \
\text { Related overhead } & \$ 17,500 \
\text { Supply clerk's wages } & \$ 18,000 \
\text { Fringe benefits } & \$ 4,000 \
\text { Related overhead } & \$ 20,000 \
\text { Profit margin per hour } & \$ 20 \
\text { Profit margin on materials } & 15 \% \
\text { Total estimated consulting hours } & 5,000 \
\text { Total estimated material costs } & \$ 168,000
\end{array}$$
-The material loading charge is
A) 15%.
B) 25%.
C) 40%.
D) 55%.

Quizplus · Accepted Answer

The material loading charge is calculated by adding the profit margin on materials (15%) to the overhead costs related to materials. The overhead costs related to materials are calculated as the sum of the supply clerk's wages, fringe benefits, and related overhead, divided by the total estimated material costs. This results in a loading charge of 40%.

Use the Following Information for Questions Carlos Consulting Inc

Use the Following Information for Questions
Carlos Consulting Inc