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

Question

Carlos Consulting Inc.provides financial consulting and has collected the following data for the next year's budgeted activity for a lead consultant. $$\begin{array} { l l } 
\text { Consultants' wages } & \$ 90,000 \
\text { Fringe benefits } & \$ 22,500 \
\text { Related overhead } & \$ 17,500 \
\text { Supply clerk's wages } & \$ 18,000 \
\text { Fringe benefits } & \$ 4,000 \
\text { Related overhead } & \$ 20,000 \
\text { Profit margin per hour } & \$ 20 \
\text { Profit margin on materials } & 15 \% \
\text { Total estimated consulting hours } & 5,000 \
\text { Total estimated supply costs } & \$ 168,000
\end{array}$$ 
-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 are calculated as the sum of the supply clerk's wages, fringe benefits, and related overhead, divided by the total estimated supply costs. This results in a loading charge of 40%.

Carlos Consulting Inc -The Material Loading Charge Is A)15

Carlos Consulting Inc -The Material Loading Charge Is
A)15