Yelk Garage Uses Time and Materials Pricing What Should Yelk Set as the Direct Labor Rate Per

Yelk Garage uses time and materials pricing.It is setting prices for next year using the following information: $$\begin{array}{l}\begin{array} { l l r } \text {Labor rate, including fringe benefits}&\$ 50 \text { per hour } \\\text {Annual labor hours}&3,350 \text { hours } \\\text {Annual materials purchases}&\$ 825,000 \\\text {Materials purchasing, handling, and storage}&\$ 46,000 \\\text {Overhead for depreciation, taxes, insurance, etc.}&\$ 67,000 \\\text {Target profit margin for both labor and materials}&20 \%\end{array}\end{array}$$ What should Yelk set as the direct labor rate per hour?

A) $70 per hour.
B) $50 per hour.
C) $64 per hour.
D) $100 per hour.
E) $84 per hour.

Correct Answer:

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