Paul's Auto Repair Uses Time and Material Pricing Assuming There Is No Profit Markup on Material Cost, the Shop

question 4

Multiple Choice

Paul's Auto Repair uses time and material pricing. The body shop, which anticipates 10,000 direct labor hours of activity, has the following data: $\begin{array}{lr}\text { Annual overhead costs: }\\\text { Material handling and storage } & \$ 15,000 \\\text { Other overhead costs } & 75,000\\\text { Annual cost of materials used } & 187,500 \\\text { Labor rate per hour, including fringe benefits } & 18 \\\text { Hourly charge to achieve profit margin } & 11\end{array}$ Assuming there is no profit markup on material cost, the amount to be added to each dollar of material cost to obtain the total material charge is:

• A) $0.06.
• B) $0.08.
• C) $0.10.
• D) $0.13.
• E) none of the other answers are correct.

Grasp the significance of sexual education, contraception use, and the consequences of sexual behaviors.

Learn about the prevalence, risks, and prevention of sexually transmitted infections (STIs) among adolescents.

Recognize the role of communication in positive sexual health practices and attitudes.

Understand the development of emotion regulation in infants and toddlers.

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Definitions:

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects cash from its credit sales by dividing net credit sales by the average accounts receivable.

Inventory Turnover

A ratio showing how many times a company has sold and replaced inventory over a period.

Allowance For Doubtful Accounts

A contra-asset account that reduces the total receivables on the balance sheet by the amount expected not to be collected.

ROCE

Return on Capital Employed; a financial ratio that measures a company's profitability and the efficiency with which its capital is employed.