Use the Following Information for Questions
the Following Data

question 58

Multiple Choice

Use the following information for questions
The following data are available for Wheels 'N Spokes Repair Shop for 2016: $$\begin{array} { l r } \text { Repair technician's wages } & \$ 150,000 \\\text { Fringe benefits } & 50,000 \\\text { Overhead } & { 80,000 } \\\text { Total } & \$ 280,000\end{array}$$ 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 2016.
-In March 2016, 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:

Cash Coverage Ratio

A financial metric that measures a company's ability to cover its debt obligations with its available cash and cash equivalents.

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations by comparing net income before interest and taxes to its interest expenses.

Depreciation Expense

The allocation of an asset's cost over its useful life, reflecting the decrease in value over time due to wear and tear or obsolescence.

Accounts Receivable

Money owed by customers to a company for goods or services that have been delivered but not yet paid for.