Waterways (This is a continuation of the Waterways Problem from Chapters 14 through 20.) WC21 Waterways Corporation comp

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Waterways This Is A Continuation Of The Waterways Problem From Chapters 14 Through 20 Wc21 Waterways Corporation Comp 1 (168.02 KiB) Viewed 48 times

Waterways (This is a continuation of the Waterways Problem from Chapters 14 through 20.) WC21 Waterways Corporation competes in a market economy in which its products must be sold at market prices. Its emphasis is therefore on manufacturing its products at a cost that allows the company to earn its desired profit. This problem asks you to consider various pricing situations for Waterways' projects. Waterways uses time and material pricing when it bids on irrigation projects. Budgeted data for 2022 are as follows. WATERWAYS CORPORATION Budgeted Costs for Irrigation Projects for 2022 Material Time Loading Charges Charges $240,000 Labor wages (5,750 hours) Supervisor's salary $ 60,000 Clerical and accountant wages 60,000 4,000 Irrigation supplies manager 40,000 Overhead 53,950 21,000 Total $353,950 $125,000 Waterways has budgeted for 5,750 labor hours. It desires a $14 profit margin per hour of labor and 16% profit on materials. It estimates the total invoice cost of materials in 2022 will be $640,000. Instructions (a) Compute the rate per hour of labor. (Round to two decimal places.) (b) Compute the material loading charge. (Round to two decimal places.) (c) Waterways has received a request for a price quotation to do a parkway for the city. The irrigation manager estimates that it will take about a month to complete the project and require 480 hours of labor and $80,000 of materials. Compute the total estimated price quotation for the parkway project.