Pharoah Homes is a house cleaning service. As a special feature, Pharoah Homes will supply flowers or small decorator it
Posted: Wed May 04, 2022 6:36 am
Pharoah Homes is a house cleaning service. As a special
feature, Pharoah Homes will supply flowers or small
decorator items when they clean a home. They use a time and
material billing policy. Based on the following costs and desired
profits, calculate the hourly rate for labour and the material
loading charge for Pharoah Homes, assuming that
in 3,900 hours per year they clean 870 homes.
Invoice costs per year are $166,000.
Cathy, a potential new client, would like to have her home
cleaned every two weeks and a large floral arrangement to be
provided for the dining room table and a small arrangement for the
kitchen table. Pharoah Homes estimates that it will
take 2 maids 4 hours to clean Cathy’s home and
the invoice cost for the flowers will be $53. Using the rates
calculated in Parts 1. and 2, determine Cathy’s bi-weekly
bill. (Round entry to 2 decimal places, e.g.
15.25.)
Part 1: labour rate = 30.63
Part 2: Materials loading charge = 42%
feature, Pharoah Homes will supply flowers or small
decorator items when they clean a home. They use a time and
material billing policy. Based on the following costs and desired
profits, calculate the hourly rate for labour and the material
loading charge for Pharoah Homes, assuming that
in 3,900 hours per year they clean 870 homes.
Invoice costs per year are $166,000.
Cathy, a potential new client, would like to have her home
cleaned every two weeks and a large floral arrangement to be
provided for the dining room table and a small arrangement for the
kitchen table. Pharoah Homes estimates that it will
take 2 maids 4 hours to clean Cathy’s home and
the invoice cost for the flowers will be $53. Using the rates
calculated in Parts 1. and 2, determine Cathy’s bi-weekly
bill. (Round entry to 2 decimal places, e.g.
15.25.)
Part 1: labour rate = 30.63
Part 2: Materials loading charge = 42%