E8-9 Rey Custom Electronics (RCE) sells and installs complete security, computer, audio,

E8-9 Rey Custom Electronics (RCE) sells and installs complete security, computer, audio, and video systems for homes. On newly constructed homes it provides bids using time-and-material pricing. The following budgeted cost data are available.
                                                                                                            Material

                                                                                    Time                Loading

                                                                                    Charges            Charges
Technicians’ wages and benefits                                 $150,000             —

Parts manager’s salary and benefits                                —                 $34,000

Office employee’s salary and benefits                        30,000             15,000

Other overhead                                                            15,000             42,000
Total budgeted costs                                                    $193,000         $91,000

The company has budgeted for 6,250 hours of technician time during the coming year. It desires a $38 profit margin per hour of labor and a 80% profit on parts. It estimates the total invoice cost of parts and materials in 2017 will be $700,000.

Instructions
(a) Compute the rate charged per hour of labor.

(b) Compute the material loading percentage.

(c) RCE has just received a request for a bid from Buil Builders on a $1,200,000 new home. The company estimates that it would require 80 hours of labor and $40,000 of parts. Compute the total estimated bill.