Use the Following Information for Questions

question 9

Multiple Choice

Use the following information for questions
The following data are available for Wheels 'N Spokes Repair Shop for 2012: The desired profit margin is $15 per labour hour.The material loading charge is 35% of invoice cost.It is estimated that 4,000 labour hours will be worked in 2012.
-In March 2012, Wheels 'N Spokes repairs a bicycle that takes three hours to repair and uses parts of $70.The bill for this repair would be

• A)$244.50.
• B)$289.50.
• C)$304.50.
• D)$349.50.

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Definitions:

Product Return

The process by which a customer returns a product to the seller for a refund or exchange.

Operating Statement

A financial document that provides a summary of a company's revenues, expenses, and profits over a specific period, often used to assess financial performance.

Selling Expenses

Costs incurred directly from the selling of products or services, including advertising, promotions, and sales personnel salaries.

Direct Labor

Labor costs directly associated with the production of goods or services, typically including wages of workers or employees involved in manufacturing.