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ACC Chapter 11- P8 - Route 66 Car Repair




Question;Route 66 Car Repair performs routine maintenance on rental vehicles. Recently the local auto rental had its fleet serviced. The company uses the time and materials pricing system and data from the previous year to compute markup percentages for overhead related to parts and materials and overhead related to direct labor. Its adds markups of 100% to the cost of materials and parts and 120% to the cost of direct labor to cover overhead and profit. The following materials, parts, and direct labor are needed to repair the rental fleet.Quantity Unit PriceMaterials and Parts:24 Spark plugs 0.5050 Oil quarts 2.5012 Hoses 11.201 Sun Visor 13.5036 Coolant quarts 6.504 Clamps 5.505 Emergency kits 12.4040 Washer fluid 1.254 Tires 300.00Hours Hourly RateDirect Labor:38 Mechanic hours 28.2061 Assistant Mechanic hours 14.00Prepare a complete billing for this job. Include itemized amounts for each type of materials, parts and direct labor. Follow the time and materials pricing approach, and show the total for the job.


Paper#39109 | Written in 18-Jul-2015

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