Question

Marshall Grocery Delivery Service reports the following information: Rate per hour of direct labor is: Labor rate per hour $ 20 Rate per hour of direct labor $ 25.80 Materials markup 23 % Target profit margin 20 % The materials markup for a job that will use 100 labor hours and $2,000 of materials is:

Answer 1

Answer:

$460

Explanation:

The following information was reported from Marshall Grocery delivery service report

Labor rate per hour= $20

Rate per hour= $25.80

Materials markup= 23%

Target profit margin= 20%

The material markup for a job that will use 100 labor hours and $2,000 of materials is calculated as follows

Materials markup= Materials × percentage

= $2,000×23/100

= $2,000×0.23

= $460

Hence the materials markup is $460