Use the Following Information for Questions -Jaycee Estimates That the Repairs to a Cadillac Escalade Damaged

question 51

Multiple Choice

Use the following information for questions .
Jaycee Auto Repair has the following budgeted costs for the next year: $\begin{array}{lcr}&\text { Time Charges}&\text { Material Charges }\\\text { Shop employees' wages and benefits } & \$ 120,000 & \$ \\\text { Parts manager's salary and benefits } & - & 45,000 \\\text { Office employee's salary and benefits } & 30,000 & 15,000 \\\text { Other overhead } & 15,000 & 40,000 \\\text { Invoice cost of parts and materials } & - & 400,000\\\text { Total budgeted costs }&\$165,000&\$500,000\end{array}$
-Jaycee estimates that the repairs to a Cadillac Escalade damaged in an accident will take 45 hours of labor and $3,500 in parts and materials. The total cost of the repairs is

• A) $5,890.
• B) $7,890.
• C) $5,775.
• D) $7,015.

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