Padong Remanufacturing rebuilds spot welders for manufacturers. The following budgeted cost data for 2022 are available for Padong:

Time Charges Material Loading Charges
Technicians’ wages and benefits $228,000  
Parts manager’s salary and benefits $42,500
Office employee’s salary and benefits 38,000 9,000
Other overhead 15,200 24,000
Total budgeted costs $281,200 $75,500
The company wants a $30 profit margin per hour of labour and a 20% profit margin on parts. It has budgeted for 7,600 hours of repair time in the coming year and estimates that the total invoice cost of parts and materials in 2022 will be $400,000.

Instructions

Calculate the rate charged per hour of labour.
Calculate the material loading percentage to three decimal places.
Lindy Corporation has asked for an estimate on rebuilding its spot welder. Padong estimates that it would require 40 hours of labour and $2,000 in parts. Calculate the total estimated bill.